Economic Implications of Health Care Burden for Elderly Population
The implications of population aging for economic growth is not only the shrinking working-age population, but also the increasing health care burden of the elderly population. It is difficult to explain clearly the relationship between a country’s aging population and its economy without considerin...
| Main Authors: | , , , |
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| Format: | Article |
| Language: | English |
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SAGE Publishing
2022-09-01
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| Series: | Inquiry: The Journal of Health Care Organization, Provision, and Financing |
| Online Access: | https://doi.org/10.1177/00469580221121511 |
| _version_ | 1798037321010905088 |
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| author | Bo Tang PhD Candidate Zhi Li PhD Song Hu MD Jianru Xiong MD |
| author_facet | Bo Tang PhD Candidate Zhi Li PhD Song Hu MD Jianru Xiong MD |
| author_sort | Bo Tang PhD Candidate |
| collection | DOAJ |
| description | The implications of population aging for economic growth is not only the shrinking working-age population, but also the increasing health care burden of the elderly population. It is difficult to explain clearly the relationship between a country’s aging population and its economy without considering health effects. Based on the Solow economic growth model, the aims of this study are to estimate the economic effects of the health care burden for elderly population, and to access whether reducing effective labor input for economic production. The analysis employs a set of econometric approaches including fixed effects, generalized method of moments, instrumental variable, and mediation regression analyses using a multinational multi-database covering the years 2000-2019. The empirical evidence indicates that the health care burden was negatively correlated with economic growth during the study period, with every 1% increase in the health care burden leading to a 0.083% decrease in the GDP growth rate. The results of heterogeneity analysis and mediating analysis further confirmed that worsening health in the elderly population could be associated with the deceleration in economic development through the indirect pathway that lowering the employment rate of working-age population. This study provides new empirical evidence on the economic impact of population aging that the poor health of elderly population can be one critical factor of limiting economic growth, for the reason the labor inputs in household production are likely crowded out by family caregiving. |
| first_indexed | 2024-04-11T21:24:58Z |
| format | Article |
| id | doaj.art-68bfd408f4654573b5014116b506b1e0 |
| institution | Directory Open Access Journal |
| issn | 0046-9580 1945-7243 |
| language | English |
| last_indexed | 2024-04-11T21:24:58Z |
| publishDate | 2022-09-01 |
| publisher | SAGE Publishing |
| record_format | Article |
| series | Inquiry: The Journal of Health Care Organization, Provision, and Financing |
| spelling | doaj.art-68bfd408f4654573b5014116b506b1e02022-12-22T04:02:27ZengSAGE PublishingInquiry: The Journal of Health Care Organization, Provision, and Financing0046-95801945-72432022-09-015910.1177/00469580221121511Economic Implications of Health Care Burden for Elderly PopulationBo Tang PhD Candidate0Zhi Li PhD1Song Hu MD2Jianru Xiong MD3Chongqing University, Chongqing, ChinaChongqing University, Chongqing, ChinaYangtze Normal University, Chongqing, ChinaChongqing University, Chongqing, ChinaThe implications of population aging for economic growth is not only the shrinking working-age population, but also the increasing health care burden of the elderly population. It is difficult to explain clearly the relationship between a country’s aging population and its economy without considering health effects. Based on the Solow economic growth model, the aims of this study are to estimate the economic effects of the health care burden for elderly population, and to access whether reducing effective labor input for economic production. The analysis employs a set of econometric approaches including fixed effects, generalized method of moments, instrumental variable, and mediation regression analyses using a multinational multi-database covering the years 2000-2019. The empirical evidence indicates that the health care burden was negatively correlated with economic growth during the study period, with every 1% increase in the health care burden leading to a 0.083% decrease in the GDP growth rate. The results of heterogeneity analysis and mediating analysis further confirmed that worsening health in the elderly population could be associated with the deceleration in economic development through the indirect pathway that lowering the employment rate of working-age population. This study provides new empirical evidence on the economic impact of population aging that the poor health of elderly population can be one critical factor of limiting economic growth, for the reason the labor inputs in household production are likely crowded out by family caregiving.https://doi.org/10.1177/00469580221121511 |
| spellingShingle | Bo Tang PhD Candidate Zhi Li PhD Song Hu MD Jianru Xiong MD Economic Implications of Health Care Burden for Elderly Population Inquiry: The Journal of Health Care Organization, Provision, and Financing |
| title | Economic Implications of Health Care Burden for Elderly Population |
| title_full | Economic Implications of Health Care Burden for Elderly Population |
| title_fullStr | Economic Implications of Health Care Burden for Elderly Population |
| title_full_unstemmed | Economic Implications of Health Care Burden for Elderly Population |
| title_short | Economic Implications of Health Care Burden for Elderly Population |
| title_sort | economic implications of health care burden for elderly population |
| url | https://doi.org/10.1177/00469580221121511 |
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