Template-Type: ReDIF-Article 1.0
Author-Name: Marija Trpkova-Nestorovska
Author-Email: marija.trpkova-nestorovska@eccf.ukim.edu.mk
Author-Workplace-Name: Faculty of Economics-Skopje, Ss. Cyril and Methodius University in Skopje, North Macedonia
Title: Viable health funding in time of demographic ageing
Abstract: In the past several decades, a new challenge has arisen. It refers to the rapid demographic aging of the   population   in   developed   and   developing   countries,
quite   the   opposite   of   the   previous understanding of an overpopulated planet. An increase in the older population brings implications for different  segments  
of  society  and  the  national  health  system,  and  its  funding  is  one  of  them.  This paper  aims  to  analyse  if  there  is  a  relationship  between  government health  expenditure
and  the increase  in  the  older  population  in  fourteen  countries  in  the  European  Union  experiencing  the  most intense  process  of  demographic  aging.  
The  relationship  between  health  expenditure  and  population aging  is  a  highly  debatable  issue.  There  is  significant  research  supporting  both  hypotheses, 
the former being that aging influences the health expenditures and the latter i.e., the opposite one that the demographic aging of the population does not drive the health expenditures. 
More thantwenty years ago,  this  conundrum  was  addressed  as  a  "Red  Herring"; however,the  debate  continues up  to nowadays. This paper aims to determine whetheraging is a significant factor 
when it comes to health expenditure. Accordingly, possible further recommendations will follow - should policymakers look at the aging population or other possible determinants to prevent the potential rise 
in health expenditure such as government social spending. The model also includes gross domestic product per capita and a dummy variable to estimate the effect of the global recession on health expenditure.
Classification-JEL: J11, I18, C33
Keywords: demographic aging, health expenditure, Panel Regression Model
Journal: Economy, Business & Development: An International Journal
Pages: 15-27
Volume: 3
Issue: 1
Year: 2022
Month: May
DOI: 10.47063/ebd.00008
File-URL: https://journals.ukim.mk/index.php/ebd/article/view/1620/1452
File-Format: Application/pdf
Handle: RePEc:aoh:journl:v:3:y:2022:i:1:p:15-27