Unveiling Convergence in Healthcare Expenditures in OECD Countries: Evidence From Club Convergence Analysis

ABSTRACT The purpose of this study is to investigate the convergence dynamics of per capita healthcare expenditures in OECD countries. The study employs the Club Convergence Hypothesis framework, following the approach proposed by Phillips and Sul. There is no overall convergence in per capita health expenditure among OECD countries during the period studied. However, 38 OECD countries were categorized into three final convergence clubs based on per capita health expenditure: Club A includes 23 countries, Club B consists of 9 countries, and Club C comprises 6 countries. A comprehensive analysis of the commonalities and divergences in the healthcare systems of countries within these clubs yields valuable policy recommendations.