Lifestyles, health expenditure and the production of healthcare: evidence from Greece

Abstract

This study explores the factors affecting health outcomes in Greece, focusing on life expectancy. Using data from 2014 to 2022, we model how life expectancy is influenced by health spending and behavioral risk factors, including sugar, tobacco, and fat consumption. On a national level, increased healthcare spending appears to improve health outcomes. However, a more detailed regional analysis indicates that this spending is largely driven by unhealthy consumption patterns such as high sugar and tobacco consumption. Fat consumption, however, shows no significant effect. In other words, the observed improvements in life expectancy at the national level may be more about mitigating the harmful effects of unhealthy lifestyles rather than proactively enhancing public health. This suggests that simply increasing healthcare spending may not be enough to improve health outcomes. Instead, targeted policy interventions are necessary to address risky behaviors.