INVESTIGATION OF FACTORS AFFECTED IN HEALTH EXPENDITURES: PANEL DATA ANALYSIS ON THE OECD COUNTRIES (2000-2015)

Abstract

The diversified and diversified healthcare services and increasing demand for pharmaceuticals enable the delivery of chemical drugs to national and international markets. The study explores which factors affect health spending in OECD countries. The difference of the study is the life span of the study as an independent variable. With the increase in drug use and health services, the effect of health expenditures and life expectancy has been tried to be measured. In the analysis, In the first stage of the analysis, cross-sectional dependence and homogeneity tests were performed. (2003), Maddala and Wu (1999) and Choi (2001) tests, second-generation unit root tests were tested for stability by CIPS test. When the obtained results are evaluated, All independent variables are effective in increasing health expenditures (positive relationship). Per capita income variable 1 unit Health expenditures variable when increased 23.9 unit. It will increase. Total drug sales amounts variable 1 unit Health expenditures when increased 15.2 unit. It will increase. Life time variable 1 unit. Health expenses increased by 0.09 unit. It will increase. The shadow variable indicating the impact of the global crisis has been meaningful, the impact of the crisis on health expenditures. When the size of the coefficient is examined, it is seen that the most effective variable in health expenditures is income, afterwards determining pharmaeutical expenditures.