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Decomposition of Factors Affecting China’s Per-capita Health Expenditure Growth
Pages: 118-127
Year: Issue:  8
Journal: Insurance Studies

Keyword:  growth in per capita health expenditurefactorsfactor decompositioninternational comparison;
Abstract: There are few papers focusing on the contribution of different factors affecting China’s per capita health expenditure growth. This paper employed"residual method"proposed by Newhouse in 1992 to calculate the contribution of various factors affecting China’s per capita health expenditure growth. The results were that improved income and medical technological progress were main drivers,the impact of population aging was negligible,and health insurance had a negative impact. Based on the"residual method",as to the factors affecting per capita health expenditure growth,China and the United States had the same trend but with different magnitudes,which resulted from the different stages of economic development and different institutional change paths in the two countries. The proposals were that the attention of controlling health expenditure growth should be moved from population aging to factors such as improved income,health insurance and especially medical technological progress and so on.
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