Effects of three factors on total health care expenditure

This paper analyzes the effects of GDP,population age distribution,and urbanization on the total health care expenditure using the co-integration theory.It is found that there exists the unique long-run relationship among GDP,population age distribution,urbanization and the health care expenditure.The urbanization has the most significant effect on the total health care expenditure,and its elasticity is more than 1,which indicates that the need for health care in the country is restrained seriously.The effect of population distribution on the total health care expenditure is less than that of urbanization.GDP has the slightest effect on the total health care expenditure among the three factors,and its elasticity is less than 1,which means that health care is necessary.