The relationship between insurance development, population, economic growth, and health expenditures in OECD countries: a panel causality analysis

Abstract This paper examines the relationship between insurance development, population, economic growth, and health expenditures for a panel of 31 OECD countries over the period 1995–2021. A dynamic panel data analysis based on cointegration, FMOLS, DOLS, VECM, and Granger causality tests is employ...

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Main Authors: Moheddine Younsi, Marwa Bechtini, Mongi Lassoued
Format: Article
Language:English
Published: SpringerOpen 2024-11-01
Series:Future Business Journal
Subjects:
Online Access:https://doi.org/10.1186/s43093-024-00404-7
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author Moheddine Younsi
Marwa Bechtini
Mongi Lassoued
author_facet Moheddine Younsi
Marwa Bechtini
Mongi Lassoued
author_sort Moheddine Younsi
collection DOAJ
description Abstract This paper examines the relationship between insurance development, population, economic growth, and health expenditures for a panel of 31 OECD countries over the period 1995–2021. A dynamic panel data analysis based on cointegration, FMOLS, DOLS, VECM, and Granger causality tests is employed to suggest for the existence of a long-run relationship among variables. The long-run results show that insurance development, national income, and population exhibit positive impacts on health expenditures. The results reveal that insurance factor has larger income effects than substitution effects on health expenditures. Regarding the short-run causal relationship between the variables, the empirical results suggest that economic growth strengthens health expenditure growth, while insurance growth reduces it. In the short-run, insurance development has a crowding-out effect since it produces larger substitution effects than income effects. The results provide political implications that governments need to concern the short-run crowding-out effect of private insurance sections on health expenditures when making fiscal policies on public health expenditures.
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spelling doaj-art-70412c17062e466c8ca69db8a1ef7cbf2025-08-20T02:31:59ZengSpringerOpenFuture Business Journal2314-72022314-72102024-11-0110111910.1186/s43093-024-00404-7The relationship between insurance development, population, economic growth, and health expenditures in OECD countries: a panel causality analysisMoheddine Younsi0Marwa Bechtini1Mongi Lassoued2Department of Business Administration, College of Science and Humanities, Shaqra UniversityDepartment of Business Administration, College of Science and Humanities, Shaqra UniversityDepartment of Economics, Higher Institute of Finance and Taxation, University of SousseAbstract This paper examines the relationship between insurance development, population, economic growth, and health expenditures for a panel of 31 OECD countries over the period 1995–2021. A dynamic panel data analysis based on cointegration, FMOLS, DOLS, VECM, and Granger causality tests is employed to suggest for the existence of a long-run relationship among variables. The long-run results show that insurance development, national income, and population exhibit positive impacts on health expenditures. The results reveal that insurance factor has larger income effects than substitution effects on health expenditures. Regarding the short-run causal relationship between the variables, the empirical results suggest that economic growth strengthens health expenditure growth, while insurance growth reduces it. In the short-run, insurance development has a crowding-out effect since it produces larger substitution effects than income effects. The results provide political implications that governments need to concern the short-run crowding-out effect of private insurance sections on health expenditures when making fiscal policies on public health expenditures.https://doi.org/10.1186/s43093-024-00404-7Insurance developmentHealth expendituresEconomic growthPopulationDynamic panel models
spellingShingle Moheddine Younsi
Marwa Bechtini
Mongi Lassoued
The relationship between insurance development, population, economic growth, and health expenditures in OECD countries: a panel causality analysis
Future Business Journal
Insurance development
Health expenditures
Economic growth
Population
Dynamic panel models
title The relationship between insurance development, population, economic growth, and health expenditures in OECD countries: a panel causality analysis
title_full The relationship between insurance development, population, economic growth, and health expenditures in OECD countries: a panel causality analysis
title_fullStr The relationship between insurance development, population, economic growth, and health expenditures in OECD countries: a panel causality analysis
title_full_unstemmed The relationship between insurance development, population, economic growth, and health expenditures in OECD countries: a panel causality analysis
title_short The relationship between insurance development, population, economic growth, and health expenditures in OECD countries: a panel causality analysis
title_sort relationship between insurance development population economic growth and health expenditures in oecd countries a panel causality analysis
topic Insurance development
Health expenditures
Economic growth
Population
Dynamic panel models
url https://doi.org/10.1186/s43093-024-00404-7
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