Optimization Of Health Expenditures As Human Capital

Research Article
Murat Binay and Veysel Ulusoy
Health Expenditure, Economic Growth, Armey Curve

Economic growth and development is the most important economic objective for under developed and developing countries. Since the capital regarded as the engine of the growth while regarded only as a physical means of production, which can be expressed as machinery and equipment until the 1960s, human education, vocational skills and experience were also formed by the human capital and it is started to be evaluated more important than the physical capital. Because the skills and professional skills that employees get are the most important factor explaining the superiority of developed countries. Especially countries like South Korea, Taiwan and Singapore, which showed rapid economic growth and created Asian miracles, gave importance to primary and secondary education and increased compulsory primary education period to 9 years. In addition, these countries have increased the quality of their education and have also taken care of higher education. In the literature, it has been understood how to increase human capital accumulation with the understanding of the importance of human capital and it is seen that education and health are the two main components. Priority is spent exclusively on education, health spending on life, as well as health parameters. One of the main areas of study in economics is the effectiveal location of resources. Mean while, studies have been carried out on how much public pending should be performed and how much this distribution should be. While a factor of production remains constant, it is known that increasing use of other factors will reduce marginal returns. Armey Curve created by Richard Armey is one of the tools developed to reveal the role of the state in the economic process. The Armey curriculum reflects the basic logic of a positive relationship between public expenditure and Gross Domestic Product (GDP), and a negative relationship after a certain point. In this research, the Armey curve will be used for the first time in health expenditures, so that economic growth will be tried to be explained through the optimization of health expenditures. OECD statistics, including Turkey, will include countries with sufficient data (n> 30); If the health expenditure percapita can be optimized with the model to be established, the position will be determined according to the optimum health expenditures of Turkey and other OECD countries, and in case of optimization, the contribution to the country's economy will be tried to be calculated.