A STUDY OF HEALTH EXPENDITURE AMONG THE ELDERLY IN AUSTRALIA THROUGH A RELATIVE DISTRIBUTION APPROACH

Abstract

This thesis adopts the relative distribution methodology to examine the precise changes in health expenditure among the elderly in Australia over a 10-year period, 2004 to 2014. A nationally representative dataset with demographic and health expenditure details of the population obtained from the Australian Department of Health is used for the analysis. In contrary to the stable growth trend observed in standard summary measures, the results from the relative distribution indicate the existence of a polarised health structure behind the expected rise in expenditure over the decade. We attribute the major increase to demographic aging, consistent with existing health expenditure literature. Notably, when looking at the drivers of polarisation, we find rising health costs due to the advancements in health system and technology in Australia to have a significant impact, especially at the lower end of the distribution, which may point to growing health inequality in the country.