Econometric analysis of the long-run relationship between preventive care spending and mortality: evidence from OECD countries, 1970-2019.

Mehdi Ammi, Farzaneh Davarzani

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Article in Empirical economics, 2025. The graph could read no effect estimate from its abstract, so it casts no vote on the map. Not yet cited in PubMed.

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2 authors.

Mehdi AmmiSchool of Public policy and Administration, Carleton University, 1125 Colonel By Dr, Ottawa, ON K1S 5B6 Canada.ORCID 0000-0002-8409-3309

Farzaneh DavarzaniSchool of Public policy and Administration, Carleton University, 1125 Colonel By Dr, Ottawa, ON K1S 5B6 Canada.

Funding

No grant is acknowledged in the PubMed record.

6 · The paper itself

Abstract

While the share of health spending from public sources dedicated to preventive care has increased, the extent to which this preventive care spending can reduce mortality is still uncertain, mainly since effects may occur only in the long run. This paper takes advantage of a recent econometric method to empirically examine the long-run relationship between mortality and public preventive care spending in 37 OECD countries from 1970 to 2019. We construct an unbalanced longitudinal dataset on all-cause mortality and public preventive spending from publicly available OECD datasets. We detect cointegration and cross-sectional dependence in our data. This leads us to use the dynamic common correlated effects (DCCE) panel error correction model from Chudik and Pesaran (2015) to address these issues and account for heterogeneity across OECD countries. Our results indicate a long-run preventive care spending elasticity of Supplementary Information: The online version contains supplementary material available at 10.1007/s00181-025-02820-2.

Indexed as

All-cause mortalityDynamic common correlated effectsHealth outcomesOECD countriesPanel error correction modelPreventive care expenditures

Identifiers

PMID41383560

DOI10.1007/s00181-025-02820-2

PMCPMC12689689

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