Rapidly growing health expenditure is a matter of grave concern for households and governments. Every government is compelled to allocate a sufficient budget to improve people's health. This study, therefore, identifies some major factors that influence the trajectory of public health care expenditure (HCE) in Pakistan for the period 1974-2017. The ARDL-bounds test and Bayer-Hanck cointegration test consistently reveal that HCE and its specified determinants are cointegrated. Long-term estimates show that healthcare infrastructure and services, income, and environmental degradation exert a positive influence on HCE. Elderly population size has a negative association with HCE. Income elasticity is inelastic, showing that healthcare is a necessity. The findings suggest that the government must pay due attention to the fair distribution of health-related infrastructure and personnel in all regions of Pakistan.
Keywords: Health care expenditure; aging; environment degradation; health care infrastructure.