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National health expenditures: a global analysis
C J Murray1, R Govindaraj, P Musgrove
1Harvard Center for Population and Development Studies, Cambridge, MA 02138.
Bulletin of the World Health Organization
|January 1, 1994
Summary
Global health spending in 1990 reached $1.7 trillion, with 60% from public sources. Rising incomes shift health expenditure towards public funding.
Area of Science:
- Health economics
- Global health policy
- Econometrics
Background:
- Research for the World Development Report 1993: Investing in Health.
- Global health expenditure data collection challenges.
- Need for comprehensive estimates of public and private health spending.
Purpose of the Study:
- To estimate total, public, and private health expenditures globally.
- To predict missing private expenditure data using regression analysis.
- To explore the relationship between health expenditure and health status.
Main Methods:
- Econometric modeling and regression analysis.
- Estimation of missing private health expenditure data.
- Analysis of global health spending patterns in 1990.
Main Results:
- Estimated global health spending at $1.7 trillion in 1990 (US dollars).
- Purchasing power parity adjusted estimate reached $1.9 trillion.
- Expenditures were approximately 60% public and 40% private.
Conclusions:
- Public health expenditure tends to increase as a share of income with rising national incomes.
- Public spending often displaces private spending in higher-income countries.
- Understanding expenditure sources is crucial for health policy and investment.