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Are more resources always the answer? A supply and demand analysis for public health services in Brazilian municipalities

Author

Listed:
  • Fabiana Rocha

    (Universidade de São Paulo (FEA/USP), Brazil)

  • Janete Duarte

    (Universidade de São Paulo (FEA/USP), Brazil)

  • Plínio Portela de Oliveira

    (Universidade de São Paulo (FEA/USP), Brazil)

  • Luis Felipe Vital Nunes Pereira

    (Universidade de São Paulo (FEA/USP), Brazil)

  • Sérgio Ricardo de Brito Gadelha

    (Universidade de São Paulo (FEA/USP), Brazil)

Abstract

The aim of this paper is to determine whether it is necessary to increase available resources to local governments or if better use of these funds is sufficient. The paper contributes to the literature by looking both at the supply and demand for public health services. If the demand is estimated correctly, one can compare its expected value to actual health expenditures. Even if actual expenditures are lower than the estimated demand, it is not certain that additional spending is necessary. If the efficiency scores (supply side) indicate that local governments can simply "save" resources to make up for the difference, then it is possible to reduce (or bring to zero) new resources only by requiring local governments to efficiently manage their expenditures. Since municipalities in Brazil are very heterogeneous, we estimate their efficiency using the metafrontier approach (O'Donnell et al., 2008), while we estimate the demand through an equation derived from the median voter theorem model. Using 2010 data, we find evidence that efficient management of spending is sufficient to meet excess demand for goods and services in the health sector

Suggested Citation

  • Fabiana Rocha & Janete Duarte & Plínio Portela de Oliveira & Luis Felipe Vital Nunes Pereira & Sérgio Ricardo de Brito Gadelha, 2017. "Are more resources always the answer? A supply and demand analysis for public health services in Brazilian municipalities," Economia, ANPEC - Associação Nacional dos Centros de Pós-Graduação em Economia [Brazilian Association of Graduate Programs in Economics], vol. 17(1), pages 98-116.
    • Handle: RePEc:anp:econom:v:18:y:2017:1:98_116
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    Citations

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    Cited by:

    1. Xuefeng Li & Han Yang & Hui Wang & Xujun Liu, 2020. "Effect of Health Education on Healthcare-Seeking Behavior of Migrant Workers in China," IJERPH, MDPI, vol. 17(7), pages 1-12, March.
    2. Elena I. Dobrolyubova & Alexandra N. Starostina, 2022. "Efficiency of Regional Public Expenditures on Education and Healthcare: Evaluation from Citizens’ Perspective," Finansovyj žhurnal — Financial Journal, Financial Research Institute, Moscow 125375, Russia, issue 4, pages 64-78, August.

    More about this item

    Keywords

    Health; Municipalities; Metafrontier; Data envelopment analysis; Median voter; Quantile regression;
    All these keywords.

    JEL classification:

    • C31 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models; Quantile Regressions; Social Interaction Models
    • D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
    • I12 - Health, Education, and Welfare - - Health - - - Health Behavior
    • H72 - Public Economics - - State and Local Government; Intergovernmental Relations - - - State and Local Budget and Expenditures

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