Table 21.2 shows GDP/capita and total health care spending per capita for 42 countries

(the fi rst two columns of numbers).

(a) Calculate the means of both variables.

(b) Calculate a regression relating health care spending to GDP/capita.

(c) Using the method discussed in equation (3.10) calculate the income elasticity of health expenditures.

(d) What does your answer to part

(c) indicate about the “share” of GDP/capita going to health? Why?

Transcribed Image Text:

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 Etatist Social Health Private State Private Private U.S.A. Societal Private Belgium Poland Insurance Estonia Slovakia France Israel Czech Republic Japan Hungary Netherlands Social-based mixed-type Societal Societal State Slovenia Korea