Lifestyles, health expenditure and the production of healthcare: Evidence from Greece

Author:

Kastrinaki Zafeira1

Affiliation:

1. Council of Economic Advisors, Ministry of Economy and Finance Greece

Abstract

Abstract

This study examines the determinants of health outcomes in Greece, with a focus on life expectancy at birth from 1988 to 2022. We model a production function where life expectancy is influenced by health expenditure and behavioral risk factors such as sugar, tobacco, and fat consumption. Using regional data analysis, we explore the relationship between health spending and various risky behaviors. Our findings show that health expenditure significantly impacts health outcomes. Furthermore, sugar and tobacco consumption exhibit adverse effects on life expectancy, whereas fat consumption appears to have no influence. While on a national level, healthcare expenditure can lead to improvements in health outcomes, a deeper analysis at the regional level shows that this expenditure is driven by unhealthy consumption patterns. Hence, the relationship on the national level partially originates from unhealthy lifestyle choices. This leads to the conclusion that increases in healthcare expenditure do not necessarily enhance health outcomes proactively but rather mitigate the negative effects of unhealthy consumption, leading to increases in life expectancy. These empirical insights underline the importance of policy intervention to promote a shift towards less risky alternatives. Encouraging the adoption of reduced-sugar or sugar-free products, as well as alternative options like e-cigarettes, emerges as a viable strategy for improving public health outcomes in Greece.

Publisher

Springer Science and Business Media LLC

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