Are Health-Care Services Luxury Goods?

Paulina Ucieklak-Jeż , Agnieszka Bem , Paweł Prędkiewicz , Rafał Siedlecki


In the theory of economy, goods are often split into necessity goods (necessities), which must be purchased for daily life, and luxury goods, which satisfy other needs such as those attributable to social status. Many researches deal with the problem of health-care services – some proved that there are luxury goods, while some proved that health-care benefits are necessity goods. Based on literature review, we have posed the following research hypothesis (H1): income elasticity for health-care spending is lower than 1 in EU countries. We have analyzed the relationship between total health expenditure per capita (THCEPC) and income – represented by gross domestic product per capita (GDPPC). We have also incorporated other variables, characterizing society’s structure: Gini coefficient, a percentage of population at risk of poverty, health state self-assessment, and healthy life years (HLY) indicator, separately for male and female population. We have found that (1) decline in the value of the Gini coefficient increased the level of THCEPC; (2) in the case of the female population, shortening of HLY stimulated the growth of THCEPC, while for male population the relationship was reversed; and (3) income elasticity of THCEPC is equal to 1.17, which means that health-care benefits are luxurious goods, with income elasticity higher than 1. Data were obtained from Eurostat Database, covering the years 2004–2014 (26 countries).
Author Paulina Ucieklak-Jeż - Jan Dlugosz University in Czestochowa (UJD)
Paulina Ucieklak-Jeż,,
, Agnieszka Bem (MISaF / IZF / KFP)
Agnieszka Bem,,
- Katedra Finansów Przedsiębiorstw i Finansów Publicznych
, Paweł Prędkiewicz (ES / DF)
Paweł Prędkiewicz,,
- Department of Finance
, Rafał Siedlecki (MISaF / IZF / KFP)
Rafał Siedlecki,,
- Katedra Finansów Przedsiębiorstw i Finansów Publicznych
Publication size in sheets0.5
Book Procházka David (eds.): The Impact of Globalization on International Finance and Accounting. 18th Annual Conference on Finance and Accounting (ACFA), Springer Proceedings in Business and Economics, 2018, Springer International Publishing, ISBN 978-3-319-68761-2, [978-3-319-68762-9], 484 p., DOI:10.1007/978-3-319-68762-9
Prochazka_The_Impact_of_Globalization.pdf / No licence information (file archived - login or check accessibility on faculty)
Keywords in EnglishHealth-care services, Income elasticity, Demand
Languageen angielski
Ucieklak_Bem_Predkiewicz_Siedlecki_Are_Health-Care_Services_Luxury_Goods.pdf 108,05 KB
Score (nominal)20
Score sourcepublisherList
Publication indicators WoS Citations = 0
Citation count*2 (2020-09-28)
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* presented citation count is obtained through Internet information analysis and it is close to the number calculated by the Publish or Perish system.