Event item

Joint Econometrics-Finance Lunch Seminars

Joint Econometrics-Finance Lunch Seminar: Alexander Overdal Kjærsgaard Marin, AU

Title: Lifetime Healthcare Expenditures Across Socioeconomic Groups: Wiping Out the Negative Social Gradient

Info about event

Time

Tuesday 9 February 2021,  at 12:00 - 12:45

Location

Online

Contact

Daniel Borup

Presenter: Alexander Overdal Kjærsgaard Marin, AU

Title: Lifetime Healthcare Expenditures Across Socioeconomic Groups: Wiping Out the Negative Social Gradient

Abstract: A negative social gradient affects healthcare expenditures and longevity in opposite directions. Lower socioeconomic groups have higher current healthcare expenditures compared to higher socioeconomic groups, but also lower life expectancy. Since higher socioeconomic groups consume lower healthcare expenditures across a relatively long lifetime, it is unclear whether a negative healthcare expenditure gradient exists in a lifetime perspective. This paper analyzes lifetime healthcare expenditures across socioeconomic groups using complete health cost data for all individuals in the entire Danish population. Contrary to existing literature, we find that all socioeconomic groups spend almost an equal amount on healthcare throughout a lifetime, once we account for mortality differences. We derive the variance of lifetime healthcare expenditures and find that all differences in lifetime healthcare expenditures between any socioeconomic groups for each separate type of healthcare expenditures and all healthcare expenditure jointly are insignificant using the Welch test. Our results suggest that improving the health of a socioeconomic group has limited effects on lifetime healthcare expenditures as immediate healthcare expenditure savings are counterbalanced by additional healthcare consumption throughout a longer life. However, health improvements might increases lifetime utility.

 

 

The 'Accounting and Finance' and 'Econometrics and Business Statistics' Sections arrange lunch seminars on a regular basis. The speakers are usually section members, mostly PhD students and postdocs. The speakers can also be visiting PhD students or professors. Each lunch seminar is followed by a discussion of the paper presented.

Organizer: Daniel Borup