LIFE EXPECTANCY AND PUBLIC HEALTH EXPENSES

Abstract

Study based on the correlation between life expectancy and level of public health expenditures. Uses the database of World Bank (sample of 179 countries from 2003 to 2007). The model designed assumes life expectancy as a function of public expenditures’ log. Results indicate the relation between variables is significant. In the absence of public health expenditures the life expectancy is only 49.67 years. The increase of public expenditures in the health per capita has a positive, but not linear, impact on life expectancy: for each dollar spent on health, there is a rise of 3.93 years. Life expectancy tends to grow as public health expenditures rises. However, the impact in life expectancy depends on current levels of public health expenditures in each country. Where the level of public expenditure is low, such relation tends to be higher. In countries with high levels of expenditures, spending should be even higher in order to attain a significant impact on life expectancy. It is highlighted the GNP is an insufficient index to assess welfare.