By Christine de la Maisonneuve & Joaquim Oliveira Martins

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Extra info for A PROJECTION METHOD FOR PUBLIC HEALTH AND LONG-TERM CARE EXPENDITURES ECONOMICS DEPARTMENT WORKING PAPERS No. 1048

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Their strategy is to instrument local area income with the variation of oil prices weighted by oil reserves. 1. 2). 97. 844. These findings are close to the estimates of Di Matteo and Di Matteo (1998) for Canadian provincial data. 98. Moscone and Tosetti (2010) investigated the long-run economic relationship between health care expenditure and income in the United States at state level. Their estimation controls for cross-section dependence and unobserved heterogeneity. As others in the literature they find health expenditure and income to be non-stationary and co-integrated.

7 percentage points of GDP. Again, the assumptions underlying the GDP projections assume some catch-up for these low income countries, explaining why their LTC expenditure patterns are more affected by the higher income elasticity assumption. 8% of GDP with the higher income elasticity. 3). 58. A sensitivity analysis has also been carried out for the evolution of the number of dependants. The two drivers of the dependency ratio, life expectancy and health care spending, have been changed separately relative to baseline.

5% of GDP in 2060. 7 percentage points of GDP. Again, the assumptions underlying the GDP projections assume some catch-up for these low income countries, explaining why their LTC expenditure patterns are more affected by the higher income elasticity assumption. 8% of GDP with the higher income elasticity. 3). 58. A sensitivity analysis has also been carried out for the evolution of the number of dependants. The two drivers of the dependency ratio, life expectancy and health care spending, have been changed separately relative to baseline.

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