NATIONAL-HEALTH EXPENDITURES - A GLOBAL ANALYSIS

As part of the background research to the World development report 199 3: investing in health, an effort was made to estimate public, private and total expenditures on health for all countries of the world. Esti mates could be found for public spending for most countries, but for p rivate expenditure in many fewer countries. Regressions were used to p redict the missing values of regional and global estimates. These econ ometric exercises were also used to relate expenditure to measures of health status. In 1990 the world spent an estimated US$ 1.7 trillion ( 1.7 x 10(12)) on health, or $ 1.9 trillion (1.9 x 10(12)) in dollars a djusted far higher purchasing power in poorer countries. This amount w as about 60% public and 40% private in origin. However, as incomes ris e, public health expenditure tends to displace private spending and to account for the increasing share of incomes devoted to health.