However, based on empirical evidence available in the literature, we assumed that an individual's probability of incurring high LTCI expenditures was affected by age, individual disability status, income level, insurance coverage, and consumption pattern of services, as the main expenditure drivers.
When π is TC and the pricing is fixed, the expenditure-minimizer drivers avoid the main roads of the road network (see Section 'Road network') as they have greater capacity thus are initialized as the more expensive links in the fixed pricing approach.
Hospital costs, including inpatient rehabilitation, were driver of expenditure, accounting for 89.5% of total costs.
Total costs were analysed including and excluding hospital costs, to determine whether hospital costs were an important driver of expenditure.
Hospital costs (€6,340) represent the main driver of expenditure, accounting for 89.5% of the total direct costs (these costs also include inpatient rehabilitation costs, which could not be separated from management costs for the acute event).
The failure to discriminate between undesirable drivers of expenditure which do need tackling – such as the high rents that pump up the housing benefit bill – and other influences – such as a rising birthrate – which constitute sound reason to increase aspects of spending, may seem like a design flaw.
"Look across the whole welfare state and ask what are the drivers of expenditure," he explained.
These results reveal that private medical expenditures are the main driver of the inefficiency of infectious diseases.
Model 1 shows that whilst age, sex and regions are all significant drivers of expenditure, gender (female) had the greatest impact (β = 0.107).
The availability of informal care and the setting of formal care as well as associated unit costs were important drivers of expenditure.
