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The role of technology in health care expenditure in the EU

Author(s): Kamil Dybczak, Bartosz Przywara, European Commission

The role of technology in health care expenditure in the EUpdf(290 kB) Choose translations of the previous link 

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Total health care expenditure in the EU countries accounts for between 4 and 11% of GDP, out of which between 3 and 9% of GDP is financed from public sources. As it accounts for between 10 and 18 % of total government spending, health care is therefore among the most significant items of social public expenditure. In addition, public expenditure on health care has been growing over most of the second half of the 20th century, not only in absolute terms, but also in relation to the national income.

The paper analyses past developments of health care expenditure in EU Member States. The methodology used expands the set of standard explanatory variables, such as demographic structure, income and health status of the population, by a variable characterising the effect of the technological progress on health care spending.

Subsequently the paper provides a projection of the long-term development of health care expenditure, with the methodology based on the EC-EPC model extended by the impact of technological development.

(European Economy. Economic Papers 400. February 2010. Brussels. PDF. 28pp. Free.)

KC-AI-10-400-EN-N (online)
ISBN 978-92-79-14886-6 (online)
ISSN 1725-3187 (online)
doi: 10.2765/6765 (online)

JEL classification: I1, H51, J11

Economic Papers are written by the staff of the Directorate-General for Economic and Financial Affairs, or by experts working in association with them. The Papers are intended to increase awareness of the technical work being done by staff and to seek comments and suggestions for further analysis. The views expressed are the author’s alone and do not necessarily correspond to those of the European Commission.

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