Academic journal article Atlantic Economic Journal

Health Care Expenditures in Africa: An Econometric Analysis

Academic journal article Atlantic Economic Journal

Health Care Expenditures in Africa: An Econometric Analysis

Article excerpt

This paper empirically identifies some of the determinants of health care expenditure, in African countries, using the most recent available cross-sectional data. While there have been many econometric investigations of health care expenditure in OECD countries and the U.S. [Newhouse, Journal of Human Resources, 1977; Gerdtham, Health Economics, 1992; Okunade and Murthy, Journal of Health Economics, 2002], the literature suffers from a striking dearth of studies dealing with health care expenditure for African countries. The present study, using the Ordinary Least Squares (OLS) technique on a cross-sectional sample of 44 African countries for the year of 2001, has estimated the effects of per capita RGDP (INCOME), per capita real foreign aid (PFAID), and on per capita real health care expenditure (HEXP). The data are gathered from World Development Indicators [2003; 2004]. INCOME, HEXP, and PFAID are in constant 1982-84 U.S. dollars. The following double-logarithmic model is estimated:

ln HEXP = -4. … 
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