Health outcomes and the quality of health care in Iceland are very good by international comparison, while income-related health inequality appears to be smaller than in most other countries. However, the health-care system is costly and, according to OECD estimates, public expenditure on health...

This paper analyses the main features of Iceland’s public expenditure and addresses some key policy issues. While overall public spending is not high compared with Iceland’s Nordic neighbours, other OECD countries have made more progress in reining it in. Budget consolidation efforts and...