Health spending as a share of GDP function
s(CHE, GDP) = S
Maps the current health expenditure and the gross domestic product of one country in one year, both in the same national currency at current prices, to the share of GDP spent on health, reported as a percentage. The change in the share between two years is HE-FM-HGDP-001 evaluated in each year and divided, which regroups as the growth factor of spending divided by the growth factor of GDP (derived identity, not a separate formula). Spending per person in international dollars is a cost converted at purchasing power parity with HE-FM-BOC-002 and a target factor of 1, as in HE-EX-BOC-005, then divided by the population. The administrative share of current health expenditure is HE-FM-ACR-001, and the Baumol records give a relative unit cost and a model share of working hours (HE-FN-BAUM-001) and a component of real health spending growth (HE-FM-BAUM-004), which HE-ER-BAUM-008 separates from a change in the GDP share. If spending is proportional to GDP raised to an income elasticity eta, the share is proportional to GDP raised to eta minus 1 and rises with GDP only when eta exceeds 1 (derived); the only live income elasticity is the Variable HE-VR-XPE-021. Notation follows the Health Spending as GDP Share article.
Current health expenditure as a percentage of gross domestic product
S = CHE / GDP * 100
Divides current health expenditure by gross domestic product for the same country and year and multiplies by 100. The WHO Global Health Expenditure Database defines its indicator che_gdp in this way, with both parts held in million current national currency units, so no exchange rate or purchasing power parity enters the share. The OECD uses the same ratio in Health at a Glance and keeps GDP as the denominator for every country. The share moves whenever either part moves, so a value read on its own says nothing about the level of spending.