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Ageing, Health, and ProductivityThe Economics of Increased Life Expectancy$
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Pietro Garibaldi, Joaquim Oliveira Martins, and Jan van Ours

Print publication date: 2010

Print ISBN-13: 9780199587131

Published to Oxford Scholarship Online: January 2011

DOI: 10.1093/acprof:oso/9780199587131.001.0001

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PRINTED FROM OXFORD SCHOLARSHIP ONLINE (oxford.universitypressscholarship.com). (c) Copyright Oxford University Press, 2021. All Rights Reserved. An individual user may print out a PDF of a single chapter of a monograph in OSO for personal use. date: 13 April 2021

The Growth of Health Expenditures: Ageing vs. Technological Progress

The Growth of Health Expenditures: Ageing vs. Technological Progress

(p.16) 2 The Growth of Health Expenditures: Ageing vs. Technological Progress
Ageing, Health, and Productivity

Brigitte Dormont

Joaquim Oliveira Martins

Florian Pelgrin

Marc Suhrcke

Oxford University Press

This chapter analyses the links between health care expenditures, technology, and health status from a micro-level perspective. A conventional explanation for the rising share of health spending in GDP, by increasing coverage also boosted aggregate health spending. Another explanation is related to a cost disease story. Health, like other care services, uses labour intensively and hence may display low productivity growth. An alternative, and somewhat opposite explanation, is that the bulk of the expenditure increase is attributable to technological change. This explanation, which has received increasing attention in the literature is the focus of this chapter.

Keywords:   ageing, life expectancy, health expenditure, public policy

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