For more advanced students, Table 21.2 provides data for at least rudimentary estimates of income elasticity of health care expenditures. Estimate a regression equation of the following form:

Log (Expenditures per capita) = a + b log (GDP per capita)

What is the implied income elasticity of expenditures across countries?

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Table 21.1 Classification of Health System Types Healthcare system type Regulation Financing Provision Cases National Health Service State State State Denmark Sweden Finland Portugal Iceland Spain Norway U.K. National Health State State Private Australia New Zealand Insurance Canada Italy Ireland Social Health Insurance Societal Societal Private Austria Luxembourg Germany Switzerland Private Health System Private Private Private U.S.A. Etatist Social Health State Societal Private Belgium Poland Insurance Estonia Slovakia France Israel Czech Republic Japan Hungary Netherlands Social-based mixed-type Societal Societal State Slovenia Korea