Work detail

Economic cycle sensitivity of health care system financing in the Czech Republic

Author: Mgr. Petra Aschermannová
Year: 2019 - summer
Leaders: PhDr. Lucie Bryndová
Work type: Economic Theory
Language: English
Pages: 105
Awards and prizes:
Abstract: The sensitivity of health insurance fund revenues to business cycle uctuations represents a
possible problem in the Czech health care system. Since it is based on Statutory Health Insurance
scheme, this system relies heavily on wage-based contributions from employees and employers
and thus may be prone to work force uctuations. The aim of this thesis is to examine how the
insurance funds revenues react to economic downturns and expansions, and whether the eect is
visible immediately or with a lag. The data from Ministry of Health, Czech Republic, were used,
as well as several macroeconomic variables representing the business cycle. The static and nite
distributed lag models on log dierenced data were employed throughout the analysis. Signicant
pro-cyclicality in total health insurance funds revenues and contributions from employees was
found, while contributions from state on behalf of economically inactive people display a countercyclical pattern and react with one year lag. In particular, 1 % increase in GDP leads to 0.5 %
increase in total health insurance revenues. These results may be useful for policymakers when
designing the composition of contributions with regard to economic situation.


Česká Spořitelna


Patria Finance