Empirical analysis of the determinants of health care expenditure in China based on co-integration and error-correction model

Empirical analysis about the determinants of health care expenditure (HCE) in China has been brought forward based on the co-integration and error correction model. The economy growth, population aging, government finance to hospital and urbanization level are all the long-term and steady-going factors which raised health care expenditure (HCE) in China. However, as indicated by the empirical analysis, none of those improvements of medical technology, the increases of medical supply and the introductions of health insurance is the long-term and stable factors. At last, some suggestions have been provided including boost the health care supply largely and enhancing more fiscal input to the state-owned hospitals.