Health And Convergence Of Health Care Expenditure In EU

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Kaie Kerem
Tiia Puss
Mare Viies
Reet Maldre

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Abstract

The objective of the paper is to review and analyze the health of population and health care expenditure and to examine the trends of convergence of health care expenditure in EU countries. One of the most often used indicators characterizing a populations health is life expectancy at birth. Comparative analyses show that the life expectancy at birth in EU-12 countries is much lower than in EU-15 countries. Although in 1992-2004 the life expectancy increased both in EU-15 countries and in EU-12 countries, the differences in the life expectancy have still remained more or less the same. Besides the low life expectancy in EU-12 countries, also the resources used in health care are below the EU-15 average level. In our paper we test the ?-, ?- and ?-convergence of the health care expenditure. For testing ?-, ?- and ?-convergence the authors have used cross-sectional data over the period 1992-2004 for health care expenditure as share of GDP and per capita health care expenditure. Data of the World Health Organization (WHO) were used for the research. The study demonstrates that although usually the increase of economic integration facilitates economic growth, the mere fact of the European Union enlargement does not bring along an automatic homogenization of health care expenditure and health policy in the EU-12 countries.

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