Objective:To analyze the conditions for government to increase health expenditure and the optimal proportion of health expenditure in total tax revenue.Methods:The influence of health expenditure on longevity risk was introduced by constructing Over Lapping Generation models(OLG models),and the relationship between health expenditure and economic growth was established.MATLAB was used to conduct numerical simulation to test the impact of parameter changes on the economy.Result:When the economic environment meets the threshold conditions,there is a proportion of health expenditure that leads to the highest output per capita.Conclusion:The greater the elasticity coefficient of labor output and capital output,the greater the proportion of optimal health expenditure;the larger the utility discount factor,the smaller the proportion of optimal health expenditure.
Over Lapping Generationhealth expenditurelongevity riskeconomic growth
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