Cyclicality of public health expenditure in India: role of fiscal transfer and domestic revenue mobilization

2019 ◽  
Vol 67 (1) ◽  
pp. 87-110 ◽  
Author(s):  
Deepak Kumar Behera ◽  
Ranjan Kumar Mohanty ◽  
Umakant Dash
Keyword(s):  
Public Health ◽  
Health Expenditure ◽  
Public Health Expenditure ◽  
Fiscal Transfer

scholarly journals Short-Run and Long-Run Income Elasticity of Healthcare Expenditure in India: Role of Domestic Revenue and Public Debt

2020 ◽  
Author(s):  
Deepak Kumar Behera ◽  
Umakant Dash
Keyword(s):  
Public Health ◽  
Public Debt ◽  
Health Expenditure ◽  
Structural Breaks ◽  
Healthcare Expenditure ◽  
Income Elasticity ◽  
Public Health Expenditure ◽  
Long Run ◽  
Short Run

Abstract Existing literature argues that income growth is an important determinant for change in healthcare expenditure in developing economies. Most of them examine the elasticity of public health expenditure concerning per capita income while the role of fiscal policies – public revenue and public debt to determine the level of spending has never been studied. Therefore, this study examines the income elasticity of public health expenditure in both short-run and long-run by controlling domestic revenue, and public debt (i.e. borrowings) in India for the period from 1980-81 to 2015-16. The study follows three steps for empirical analysis. First, we test stationarity properties of variables using the Zivot and Andrews (ZA) unit root test assuming that the Indian economy might have experienced structural breaks at different time points. Second, we examine the cointegrating relationships among variables using the Auto-Regressive Distributed Lag (ARDL) bounds testing approach. Third, we estimate both short-run and long-run elasticity by controlling structural-breaks using the unrestricted Error-Correction Term (ECT). Our result finds that domestic revenue (i.e. tax and non-tax) shows a positive and statistically significant effect while public debt (i.e. domestic and external) shows a negative and statistically significant effect on health expenditure respectively. It implies that a 1 percent increase in revenue leads to a 0.78 percent increment in public health expenditure annually while a 1 percent increase in public debt leads to an -0.51 percent reduction in public health expenditure in the long-run. Our result suggests that conducive public finance policies and alternative revenue mobilization could be a potential strategy to increase the level of health spending in India.

Empirical analysis of factors influencing the public health expenditure in Malaysia

2018 ◽  
Vol 6 (3) ◽  
pp. 1
Author(s):  
Kok Wooi Yap ◽  
Doris Padmini Selvaratnam
Keyword(s):  
Public Health ◽  
Mortality Rate ◽  
Infant Mortality ◽  
Health Expenditure ◽  
Price Index ◽  
Infant Mortality Rate ◽  
Public Health Expenditure ◽  
The Public ◽  
Empirical Results ◽  
Per Capita

This study aims to investigate the determinants of public health expenditure in Malaysia. An Autoregressive Distributed Lag (ARDL) approach proposed by Pesaran & Shin (1999) and Pesaran et al. (2001) is applied to analyse annual time series data during the period from 1970 to 2017. The study focused on four explanatory variables, namely per capita gross domestic product (GDP), healthcare price index, population aged 65 years and above, as well as infant mortality rate. The bounds test results showed that the public health expenditure and its determinants are cointegrated. The empirical results revealed that the elasticity of government health expenditure with respect to national income is less than unity, indicating that public health expenditure in Malaysia is a necessity good and thus the Wagner’s law does not exist to explain the relationship between public health expenditure and economic growth in Malaysia. In the long run, per capita GDP, healthcare price index, population aged more than 65 years, and infant mortality rate are the important variables in explaining the behaviour of public health expenditure in Malaysia. The empirical results also prove that infant mortality rate is significant in influencing public health spending in the short run. It is noted that macroeconomic and health status factors assume an important role in determining the public health expenditure in Malaysia and thus government policies and strategies should be made by taking into account of these aspects.

scholarly journals Public Health Expenditures and Health Outcomes: New Evidence from Ghana

Economies ◽  
2018 ◽  
Vol 6 (4) ◽  
pp. 58 ◽  
Author(s):  
Micheal Kofi Boachie ◽  
K. Ramu ◽  
Tatjana Põlajeva
Keyword(s):  
Public Health ◽  
Health Outcomes ◽  
Least Squares ◽  
Health Expenditure ◽  
Government Intervention ◽  
Health Sector ◽  
Health Expenditures ◽  
Public Health Expenditure ◽  
Life Expectancy At Birth ◽  
The Cost

The effect of government spending on population’s health has received attention over the past decades. This study re-examines the link between government health expenditures and health outcomes to establish whether government intervention in the health sector improves outcomes. The study uses annual data for the period 1980–2014 on Ghana. The ordinary least squares (OLS) and the two-stage least squares (2SLS) estimators are employed for analyses; the regression estimates are then used to conduct cost-effectiveness analysis. The results show that, aside from income, public health expenditure contributed to the improvements in health outcomes in Ghana for the period. We find that, overall, increasing public health expenditure by 10% averts 0.102–4.4 infant and under-five deaths in every 1000 live births while increasing life expectancy at birth by 0.77–47 days in a year. For each health outcome indicator, the effect of income dominates that of public spending. The cost per childhood mortality averted ranged from US$0.20 to US$16, whereas the cost per extra life year gained ranged from US$7 to US$593.33 (2005 US$) during the period. Although the health effect of income outweighs that of public health spending, high (and rising) income inequality makes government intervention necessary. In this respect, development policy should consider raising health sector investment inter alia to improve health conditions.

scholarly journals The Impact of Population Aging and Public Health Support on EU Labor Markets

2020 ◽  
Vol 17 (4) ◽  
pp. 1439 ◽  
Author(s):  
Mirela Cristea ◽  
Gratiela Georgiana Noja ◽  
Petru Stefea ◽  
Adrian Lucian Sala
Keyword(s):  
Public Health ◽  
Labor Market ◽  
Older People ◽  
Labor Markets ◽  
Health Expenditure ◽  
Population Aging ◽  
Public Health Expenditure ◽  
Eu Countries ◽  
Life Years ◽  
The Impact

Population aging and public health expenditure mainly dedicated to older dependent persons present major challenges for the European Union (EU) Member States, with profound implications for their economies and labor markets. Sustainable economic development relies on a well-balanced workforce of young and older people. As this balance shifts in favor of older people, productivity tends to suffer, on the one hand, and the older group demands more from health services, on the other hand. These requisites tend to manifest differently within developed and developing EU countries. This research aimed to assess population aging impacts on labor market coordinates (employment rate, labor productivity), in the framework of several health dimensions (namely, health government expenditure, hospital services, healthy life years, perceived health) and other economic and social factors. The analytical approach consisted of applying structural equation models, Gaussian graphical models, and macroeconometric models (robust regression and panel corrected standard errors) to EU panel data for the years 1995–2017. The results show significant dissimilarities between developed and developing EU countries, suggesting the need for specific policies and strategies for the labor market integration of older people, jointly with public health expenditure, with implications for EU labor market performance.

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