OECD Economic Policy Papers
The OECD Economic Policy Papers series is designed to make available selected studies on structural and macro-economic policy issues of current interest. The Papers are produced in the context of the work carried out on the two regular OECD titles, OECD Economic Outlook and Going for Growth.
- ISSN: 2226583X (online)
- https://doi.org/10.1787/2226583X
Public Spending on Health and Long-term Care
A new set of projections
This paper proposes a new set of public health and long-term care expenditure projections till 2060,
following up on the previous set of projections published in 2006. It disentangles health from longterm
care expenditure as well as the demographic from the non-demographic drivers, and refines the
previous methodology, in particular by better identifying the underlying determinants of health and
long-term care spending and by extending the country coverage to include BRIICS countries. A costcontainment
and a cost-pressure scenario are provided together with sensitivity analysis. On average
across OECD countries, total health and long-term care expenditure is projected to increase by 3.3 and
7.7 percentage points of GDP between 2010 and 2060 in the cost-containment and the cost-pressure
scenarios respectively. For the BRIICS over the same period, it is projected to increase by 2.8 and
7.3 percentage points of GDP in the cost-containment and the cost-pressure scenarios respectively.
Also available in: French
Keywords: projection methods, demographic and non-demographic effects, long-term care expenditures, public health expenditures, longevity, ageing populations
JEL:
I12: Health, Education, and Welfare / Health / Health Behavior;
J14: Labor and Demographic Economics / Demographic Economics / Economics of the Elderly; Economics of the Handicapped; Non-Labor Market Discrimination;
H51: Public Economics / National Government Expenditures and Related Policies / Government Expenditures and Health;
J11: Labor and Demographic Economics / Demographic Economics / Demographic Trends, Macroeconomic Effects, and Forecasts
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