Life Expectancy of Population of the Country: The Role of Health Services Effectiveness

Abstract

The impact of health care on life expectancy of population in different countries has been studied. The subject of the study was analysis of efficiency of public health expenditures and their percentage of Gross Domestic Product. The authors employed a relatively new method of comparative analysis, Data Envelopment Analysis (DEA), which involves to measure technical efficiency of activity of an economic entity. DEA method allowed identifying the effectiveness of economic measures in healthcare system, as well as provision of the necessary volume of medical services in different countries. A study was conducted to compare the actual effectiveness of the country's medical services to the maximum possible effectiveness. As factor indicators, the summary of health expenditure and its percentage of GDP were considered. The average life expectancy of countries was taken as an average resulting indicator. According to the results, all the surveyed indicators proved to be the most effective measures in providing population with medical services in such countries as Andorra and San Marino, Monaco. It was determined that in order to increase the average life expectancy for one year, an average annual increase in the expenditure on the health care system by 0.48% of GDP is required.