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date: 15 May 2021

Abstract and Keywords

The distribution of health spending by age has important effects on inter-generational transfers. This association between age and health care consumption raises a number of issues related to inter-generational equity particularly allocation of society's resources across age groups and the affect of an increase in health spending on distribution over time. This article discusses the inter-generational implications of public sector health care spending and financing. Health spending has two attributes that raise the question of inter-generational transfers: first, health care spending varies by age and second, the government heavily subsidizes health care. This article addresses the ways by which increase in life expectancy and other improvements in health might affect the per capita health spending on the elderly. Finally, it mentions the need for future research as much remains to be learned about how each of these attributes of the health system will evolve over time.

Keywords: health spending, age, inter-generational, financing, subsidizes

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