ECONOMETRIC MODELS OF PRIVATE AND PUBLIC HEALTH EXPENDITURE IN OECD COUNTRIES, 1970-96

We analyse the evolution of Private Consumption on Health, having into account that there are substitution effects between public and private expenditure in OECD countries. From the analysis of the evolution of these variables our main conclusion is that the increase of expenditure on Health, with economic development, is generally positive for welfare and obeys to a rational behaviour of consumers. The findings of our econometric models support a distribution between private and public expenditure, in order to guarantee general assistance of population, to get high standards of consumers welfare and to avoid abuses in demand