ECONOMICS PROJECT

NAME OF THE STUDENTS

1. ARUSH DUA (AA-27)
2. AMBREESH SHARMA (AA-26)
3. MOHAMMED YAHYA (AA-25)
4. HASITA MUPPAVARAPU(AA-29)
5. ASHRITHA SANGHISHETTY(AA-31)
6. DEVANGI SATAM (AA-30)

BBA SECOND YEAR

SECTION A

TOPIC NAME:

Life Expectancy’s Relationship with Health Expenditure and

Socio-Economic Inequalities.

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ACKNOWLEDGEMENTS 

We would like to acknowledge Mrs.Chandrima Chatterjee, (Professor, Indian

Economy in Global Scenario) for her vital cooperation and help in ensuring the
successful completion of our report. She deserves the utmost credit for the
report’s outcome.
Finally, we would want to convey our sincere thanks to our friends and
supporters; without them, the task would not have been accomplished in such a
timely manner.

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TABLE OF CONTENTS

Tittle
Acknowledgements
Executive Summary
Introduction
Literature Review
Methodology
Analysis
 Correlation
 Trend Analysis
 Descriptive Statistics
 Regression Analysis
Conclusion

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EXECUTIVE SUMMARY

This study attempted to study the relationship between life expectancy and health expenditure
using mathematical tools such as Regression, Correlation, Trend analysis, and a qualitative
study on the effects of socio-economic inequalities. Our findings show that an increase in
Health expenditure is associated with an increase in life expectancy, this relationship is
associated positively.
Trend analysis predicted the life expectancy for 2023 and 2024 at 70.41 and 70.72
respectively. The qualitative study showed that compared to men women had longer life
expectancies at birth and smaller wealth-related differences in life expectancies. In urban
households relative to rural households life expectancy at birth was higher across wealth
levels with discrepancies in life expectancy being greatest for men residing in urban areas and
lowest for women in rural areas.

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  INTRODUCTION:

Life expectancy is a key summary measure of the health and well-being of a population. A
country’s life expectancy shows its social and Economic infrastructure. It is also an indication
of the entire public health and the healthcare system. The world has seen a significant
increase in life expectancy (especially in the 20th and 21st centuries) due to the consistent
efforts being made around the world.
Life expectancy in India has risen from 54years in 1981 to 69.66 years in 2019 which shows
how India has made a lot of consistent effort in developing the infrastructure of the country.
The existing studies help us understand how India has been competing The existing studies
on life expectancy in India mostly discuss the differences in life expectancy across groups,
for example, by sex or gender, rural-urban residence, and between states. The studies indicate
that the increase in life expectancy in India has been due to steeper morality changes in the
youth.
Life expectancy at birth has increased rapidly over the last century due to a variety of factors
including declining infant mortality rates, rising standards of living, healthier lifestyles and
improved education, and advances in health care and medicine.
Economic development and improved environmental conditions in some areas (such as in
many urban areas), improved lifestyles, and advances in health care and medical care,
including lower infant mortality rates, have all contributed to continued increases in life
expectancy at birth over the last century. contributed to its growth.
Gender, genetics, access to health care, hygiene, diet, exercise, lifestyle and crime rates are
all important factors in life expectancy. Evidence-based studies show that two main factors
influence lifespan.

Objectives of study
1. Study life expectancy in India
2. Study the relationship between life expectancy and expenditure on medical and public
health and family welfare (as a ratio of aggregate expenditure) in India
3. Study the relationship between socioeconomic inequalities and life expectancy
(Qualitative)
4. Predict the life expectancy for 2023 and 2024

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  LITERATURE REVIEW

The term "life expectancy" refers to the number of years a person is expected to live. By
definition, life expectancy is based on an estimate of the average age at which members of a
particular population die.
("Life Expectancy” – What does this actually mean?, 2017)

Male life expectancy in India is 69.5, female life expectancy is 72.2, and overall life
expectancy is 70.8, according to the most recent WHO data published in 2020. This places
India 117th in the world for life expectancy. By selecting one of the links below or the
complete country health profile link at the bottom of the page, you can view the leading
causes of death information and rankings for India.
(WORLD HEALTH RANKINGS, n.d.)

India gained a decade of life expectancy since 1990,

A recent study examining over 286 causes of death and 369 illnesses and injuries in more
than 200 countries and territories worldwide found that life expectancy in India has increased
by more than a decade since 1990, but between states, There is great inequality. With public
health unchecked against the current global chronic disease crisis and the rise of preventable
risk factors such as high blood pressure, tobacco use and air pollution, people are facing
serious health risks such as COVID-19. more vulnerable to emergencies.
India has seen an improvement just like other countries because of the decline in infectious
diseases. One of the factors that was leading to low life expectancy in India was maternal
mortality which has also significantly come down. Researchers have said that 58% of the
total diseases in India are due to non-communicable diseases, which lead to people having
premature deaths. This rate has doubled from 22% to 50% since 1990CDs (non-
communicable diseases) include heart disease, COPD, diabetes, stroke, etc. The scientists
said several of the risk factors and NCDs highlighted by the study, including obesity and
diabetes are associated with increased risk of serious illness Tackling these NCD’s risk
factors can help greatly increase the life expectancy in India even after it has reached a decent
69.66 years. Changing unhealthy behaviors such as an unhealthy diet, high-calorie intake, and
less physical activity is could show a significant increase as well. Changing these behaviors
will help decrease cardiovascular-related diseases, and help with high/low blood pressure and
other preventable diseases.
(India gained decade of life expectancy since 1990, 2020)

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Increasing life expectancy rate
In India, the availability of clean drinking water and improved non-communicable illness
management are key factors in the rising average lifetime of the population; in South Korea
and India, the average lifespan was as low as 23 years barely a century ago. Life-threatening
illnesses like diphtheria, tetanus, and whooping cough have all but disappeared, and India
was been certified polio-free. However, it's believed that tobacco smoking causes 20% of
fatalities in Indian men between the ages of 30 and 69. India has not yet developed a solution
for some of the new problems brought on by civilization.

 In both rural and urban areas, life expectancy for women increased across almost all
Indian States between 2010 and 2014. Kerala had the highest life expectancy at birth
for both males and females in rural areas, followed by Himachal Pradesh for males
and Jammu and Kashmir for females.
 Madhya Pradesh had the lowest life expectancy at birth for males in rural areas and
Assam for females in rural areas.
 For both boys and females in urban areas, Chhattisgarh and Uttar Pradesh had the
lowest life expectancy at birth.

(Average Life Expectancy in India and Indian States, 2020)

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According to the National Health Profile 2019 released on Wednesday, life expectancy in
India has increased from 49.7 years in the 1970s to 1975 to 68.7 years in the 2012 to 2016
period. Males have a life expectancy of 67.4 years compared to 70.2 years for females for the
same time period.
In the study from the previous year, the life expectancy had climbed from 49.7 years in the
period between 1970 and 1975 to 68.3 years in 2011–15. Males have a life expectancy of
66.9 years, compared to 66.9 years for females for the same time period. According to the
survey on non-communicable diseases (NCD), of the 6.51 crore patients who visited NCD
clinics, 4.75% were diagnosed with diabetes, 6.19% with hypertension and 0.3% with
cardiovascular disorders 0.10% are diagnosed with stroke and 0.26% are diagnosed with
common cancers.
The National Capital Territory of Delhi (NCT) reported the highest population density,
11,320 people per square kilometer, while Arunachal Pradesh reported the lowest population
density, 17, according to the study. The survey's findings on demographics revealed a high
prevalence of the youthful and economically active population. According to the poll, 27% of
the total estimated population in 2016 was under the age of 14, while the bulk of people
(64.7%), or those who were economically active, were between the ages of 15 and 59.
Additionally, 8.5% of people were between the ages of 60 and 85.
From 1991 to 2017, India's birth rate, death rate, and rate of natural growth have all
consistently decreased. As of 2017, India had a birth rate of 20.2 per 1,000 people, a death
rate of 6.3, and a natural growth rate of 13.9 per 1,000 people. In comparison to urban areas,
the birth rate was higher in rural areas. Similar to how the death rate was higher in rural than
urban regions, so was the natural growth rate. However, because the birth rate is not declining
as quickly as the death rate, the population is still expanding.
(India’s life expectancy rises to 68.7 years, says National Health Profile 2019, 2019)

Socioeconomic inequality in life expectancy in India

In India, socioeconomic disparities in health are pervasive, with the poor living shorter, sicker
lives than their wealthier countrymen and frequently having to pay catastrophic and ruinous
out-of-pocket costs to receive medical care.  This is not surprising given that healthcare in this
nation is primarily provided by the private sector (76%) and paid for privately by the patient
(67%), making it a rich case study for the full range of market failures that can result from
leaving healthcare provision in the hands of a largely unregulated private sector. Numerous
studies have examined socioeconomic disparities in health in India using a range of access and
process indicators as well as disease-specific outcome metrics.

In comparison to other nations in a similar situation, India's public healthcare spending is still
relatively low as it moves toward Universal Health Coverage (UHC).The trade-offs between
the different aspects of the UHC agenda—namely, increasing access and thereby reducing
health inequalities, decreasing out-of-pocket costs and thereby supplying financial risk
protection, and expanding the range of healthcare services and thereby enhancing health—
come into sharp relief due to the lack of available fiscal space for health expenditure. 21 For
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nations pursuing Universal Health Coverage (UHC), where reducing health disparities and
enhancing financial risk protection are key policy goals, new methods for conducting equity-
informing economic evaluations of health policies have recently emerged.
(Miqdad Asaria, 2019)

Life expectancy at birth characterizes the socioeconomic distribution of health in India, and
the study's findings allow for the measurement of health disparities that exist throughout the
population.
The fourth phase of the National Family Health Survey, the largest health survey ever carried
out in India, is where the study draws its data from. These results serve as a baseline indicator
of the degree of lifetime health inequality across the nation and can be used to evaluate the
relative degree to which the health of various demographic subgroups is improving as India
implements Universal Health Coverage.
In India, the richest fifth of households had a life expectancy at birth of 72.7 years, compared
to the poorest fifth's 65.1 years. This resulted in a 7.6-year absolute disparity and an 11.7%-
year relative gap. Compared to men, women had longer life expectancies at birth and smaller
wealth-related differences in life expectancies. In urban households relative to rural
households, life expectancy at birth was higher across wealth levels, with discrepancies in life
expectancy being greatest for men residing in urban areas and lowest for women.
(Miqdad Asaria, 2019)

 METHODOLOGY:

1. DESCRIPTIVE STATISTICS
A descriptive statistic is a summary statistic that quantitatively describes or summarises
features of a set of data, whereas descriptive statistics is the process of employing and
analyzing those statistics.
2. CORRELATION
A statistical technique used in research to determine the association between two variables
and gauge the strength of their linear relationship is correlation analysis. The level of change
in one variable as a result of the change in the other is determined by correlation analysis, to
put it simply.
3. TREND ANALYSIS
You can forecast where your current business operations and practices will lead you by using
trend analysis to understand how your business has performed. If it's done right, it'll give you
suggestions for how you might adjust things to steer your company in the right direction.
4. REGRESSION ANALYSIS
Finding the correlation between a dependent variable and one or more independent variables
is the goal of regression analysis. An estimated regression equation is created using estimates
of the parameter values and a model of the relationship that is hypothesized.

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  ANALYSIS

 DATA

(India Stat, n.d.)

 CORRELATION

The correlation coefficient is a metric that expresses the strength of an association between
two continuous variables (r).

The coefficient value, which measures the strength and direction of the linear relationship
between the variables, is always between -1 and 1.

In other words, we've established that life expectancy increases in proportion to increases in
medical, public health, and family welfare spending (as a ratio to aggregate expenditure); this
correlation enables us to gauge the magnitude of the increase. eakly related or strongly
related

Here the correlation value is 0.946962. A positive value that is close to 1.

A coefficient of 1 means a perfect positive relationship - as one variable increases, the other
increases proportionally. A value of 0.946962 indicates a very strong relationship between
both factors.
The coefficient sign (plus or minus) indicates the direction of the relationship.

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  Positive coefficients represent direct correlation and produce an upward slope on a
graph - as one variable increases so does the other, and vice versa.
 Negative coefficients represent inverse correlation and produce a downward slope on
a graph - as one variable increases, the other variable tends to decrease.

 TREND ANALYSIS

LIFE EXPECTANCY

Trend analysis is a mathematical technique that uses historical results to predict future
outcomes.
The least square method is a form of mathematical regression analysis used to determine the
line of best fit for a set of data, providing a visual demonstration of the relationship between
the data points. Each point of data represents the relationship between a known independent
variable and an unknown dependent variable.
This method satisfies 2 conditions
1. SigmaY-Sigma Yc = 0
i.e. the sum of deviations of the actual values of Y and the computed values of Y is zero
2. Sigma (Y-Yc)^2 is least or minimum i.e. sum of the squares of deviations of the actual and
computed value is least.

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Here are the trend values for Life expectancy through the years 2010 to 2022.
The predicted life expectancy for the years 2023 and 2024 are 70.41 and 70.72 respectively.

A trend line comparison between actual life expectancy and Predicted life expectancy is
observed in the above chart.
n the years 2012 to 2021 the actual life expectancy was higher than the projected life
expectancy, but nearing the year 2022 the expected life expectancy and actual life expectancy
seem to match.
The below data reveals the trend line of expenditure on medical and public health and family
welfare (as a ratio of aggregate expenditure) in India.
From the chart, it can be understood that after 2016 the actual expenditure has fallen below
the predicted expenditure up until 2020-2021 with the exception of 2018. The projected
expenditure for the years 2023 and 2024 is 5.507 and 5.568 respectively.

EXPENDITURE

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As both the forecasted life expectancies and the expenditure for the years 2023 and 2024
show an increase, it proves the correlation of being strongly related as well. Life expectancy
is increasing as expenditures on medical and public health and family welfare increase.
 DESCRIPTIVE STATISTICS

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  REGRESSION ANALYSIS

Regression analysis is a proven method for determining which variables have an impact on a
given topic. Regression analysis allows you to confidently determine which factors are most
important, which factors can be ignored, and how these factors interact.
 The main aim of regression is to give us information about the variability of Y.
 The variable of represented in the graphs given below is The Life expectancy Rate
and the variable X here represents the Health Expenditure as a percentage of GDP.
 The Y variable here, the Life expectancy Rate, is the dependent variable.
 The X variable here which is the Health Expenditure as a percentage of GDP is
the independent variable.
 ANOVA (Analysis of Variance) is a set of calculations that provide information
about the levels of variability within a regression model and serve as a foundation
for significance tests.
 The ANOVA table tells us a lot about the regression of the company as well as the
significance of the regression.
 The value of S.S.R (sum of squares of regression) is 8.910906865, the value is
S.S.E (sum of squares of residuals) is 1.269384044 and the value of S.S.T (the
total sum of squares) is 10.18029091. The value of the F test is 63.1788 and the
value of the significance of the F test is 2.33058E-05. As we can say that our f
significance value is greater than the value of f test which means that the Life
expectancy Rate moves together with the Health Expenditure as a percentage of
GDP is the independent variable.
 The predicted Life expectancy Rate is given as 57.96192308 and with every
additional point of the Health Expenditure as a percentage of GDP the percentage
of Life expectancy Rate increases by 2.257120582

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  The value of p given in the below statistics is 2,3E-05 which usually is supposed
to be the same as the value of the f intercept. The value of p here tells us about the
strength of the relationship between the Life expectancy Rate and the Health
Expenditure as a percentage of GDP
 The data below states that there is a POSITIVE RELATIONSHIP between the
Life expectancy Rate and the Health Expenditure as a percentage of GDP.
 The P value shows that the data is insignificant.

CONCLUSION:

With the analysis of the articles, regression, and correlation we conclude that there is a
positive relationship between life expectancy and healthcare expenditure.

If the government has done proper spending on healthcare, there should be an increase in
life expectancy but not necessarily the same when vice versa. We have understood the
factors that impact Life expectancy in a country.

REFERENCES:

"Life Expectancy” – What does this actually mean? (2017, 08 28). Retrieved from Our World in Data:
https://ourworldindata.org/life-expectancy-how-is-it-calculated-and-how-should-it-be-
interpreted

Average Life Expectancy in India and Indian States. (2020, 11 15). Retrieved from Disabled World:
https://www.disabled-world.com/calculators-charts/in-lifespan.php

India gained decade of life expectancy since 1990. (2020, 10 16). Retrieved from THE HINDU:
https://www.thehindu.com/news/national/india-gained-decade-of-life-expectancy-since-
1990-says-lancet-study/article32869093.ece

India Stat. (n.d.). Retrieved from indiastat.com

India’s life expectancy rises to 68.7 years, says National Health Profile 2019. (2019, 10 31). Retrieved
from THE HINDU: https://www.thehindu.com/sci-tech/health/life-expectancy-in-india-rises-
to-687-years/article29840866.ece

Miqdad Asaria, c. a. (2019, 05 9). Socioeconomic inequality in life expectancy in India. Retrieved from
National Library of Medicine: https://www.ncbi.nlm.nih.gov/pmc/articles/PMC6528758/

WORLD HEALTH RANKINGS. (n.d.). Retrieved from https://www.worldlifeexpectancy.com/india-life-

expectancy

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 CONTRIBUTION:

Devangi Analysis, Compilation

Ambreesh Literature Review
Arush Introduction, Literature Review
Hasita Literature Review
Ashritha Analysis, Literature Review
Mohammad Article Collection

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