Abstract
This study analyses the evolution of health care expenditure in Spain. A panel data model is used to explain the main factors which affect health care expenditure in the period 1993–1999. The empirical results show that the most important determinant in the explanation of the regional health care expenditure is ageing population while other factors such as income differences and structural characteristics of the supply variables have less importance.
Acknowledgements
Marta Pascual provided a valuable contribution to the development of this research. I also thank Javier Salinas for their helpful comments and advice.