Main factors affecting household healthcare expenditures in Kermanshah province )1990-2011)

Background:  Expenditure on healthcare has become a persistent issue of policymaking at both national and international levels. The aim of this study was to investigate the main factors affecting household healthcare expenditures in Kermanshah province by Econometric ARDL model over 20 years (1991-2011).

Methods: This retrospective-analytical study investigated the impact of such variables as per capita income, proportion of population aged >65 years, number of physicians and urbanization rate) on healthcare expenditures. These data were obtained from the yearbook of Kermanshah province and Iranian Statistical center (ISC). The data analysis was done by Stata 12 and Microfit 4.1 software.

Results: The results showed a positively significant relationships both in short- and long-run, between healthcare expenditures and per capita income, number of physicians and urbanization rate. Also, no significant correlation was observed between the proportion of the population aged 65 years and above and healthcare expenditures both in short-term and long-term. 

Conclusion: The findings showed the elasticity of income was less than 1 and healthcare was an essential goods in Kermanshah province during the study period. Because the impact of variables could be different in different areas and during the time, the healthcare expenditures and its determinants are suggested to be evaluated over time.