The relationship between income, ageing population, and public health expenditures in G-7 countries: A panel ARDL approach

Health expenditures show an upward trend with increasing income and an ageing population. Modern economies and health systems are seriously feeling this pressure on public health expenditures and are seeking solutions. This study analyses the short- and long-term relationships among income, an ageing population, and public health expenditures. The G-7 countries, which are developed, were included in this study. The revenue, elderly population, and public health expenditures of the G-7 countries were analysed using the Panel ARDL method. According to the findings, the income variable is negatively related to public health expenditures in the short term. In contrast, the elderly population variable does not affect public health expenditures. In the long term, both income and the elderly population ratio positively impact public health expenditures. The elderly population does not exert significant long-term pressure on health expenditures. Recommendations include redesigning optimal health systems and increasing demand for preventive health services.