Health expenditures spent for prevention, economic performance, and social welfare

by Fuhmei Wang, Jung-Der Wang and Yu-Xiu Huang
Health Economics Review, 2016 6:45 – Published: 21 September 2016

10 pp. 522 kB

Countries with limited resources in economic downturns often reduce government expenditures, of which spending on preventive healthcare with no apparent immediate health impact might be cut down first. This research aims to find the optimum share of preventive health expenditure to gross domestic product (GDP) and investigate the implications of preventive health services on economic performance and the population’s wellbeing. The findings indicate that it is worthwhile increasing investment on prevention up until an optimization level for economic development and social welfare. Such levels could also be estimated in other economies.

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