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Health spending has risen rapidly in Japan. We find two-thirds of the spending increase in 1990–2011 resulted from ageing, and the rest from excess cost growth. The spending level will rise further: ageing alone will raise it by 3½ percentage points of GDP in 2010–30, and excess cost growth at the rate observed in 1990–2011 will lead to an additional increase of 2–3 percentage points of GDP. This...
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