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Does Health-Care Spending Crowd Out Other Provincial Government Expenditures?

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Author Info

  • Stuart Landon
  • Melville L. McMillan
  • Vijay Muralidharan
  • Mark Parsons

Abstract

Health spending, the largest component of provincial government spending, has risen significantly over the past decade. It has been asserted that larger health expenditures have caused provincial governments to spend less on other types of government services. Using a panel of province-level data for the period 1988/89 to 2003/04, this study provides a test of the hypothesis that health spending has crowded out other types of spending. The results indicate that, for the period studied, there is no evidence that increased provincial government health expenditures resulted in lower levels of spending on other categories of government provided goods and services.

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Bibliographic Info

Article provided by University of Toronto Press in its journal Canadian Public Policy.

Volume (Year): 32 (2006)
Issue (Month): 2 (June)
Pages: 121-142

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Handle: RePEc:cpp:issued:v:32:y:2006:i:2:p:121-142

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Postal: University of Toronto Press Journals Division 5201 Dufferin Street Toronto, Ontario, Canada M3H 5T8
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References

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  1. Karlsson, Sune & Lothgren, Mickael, 2000. "On the power and interpretation of panel unit root tests," Economics Letters, Elsevier, vol. 66(3), pages 249-255, March.
  2. Hettich,Walter & Winer,Stanley L., 2005. "Democratic Choice and Taxation," Cambridge Books, Cambridge University Press, number 9780521021807, December.
  3. Michael Marlow & Alden Shiers, 1999. "Do law enforcement expenditures crowd-out public education expenditures?," Applied Economics, Taylor & Francis Journals, vol. 31(2), pages 255-266.
  4. Wallace E. Oates, 1999. "An Essay on Fiscal Federalism," Journal of Economic Literature, American Economic Association, vol. 37(3), pages 1120-1149, September.
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Cited by:
  1. Amin Mawani, 2011. "Can We Get Better for Less: Value for Money in Canadian Health Care," Working Papers 110503, Certified General Accountants Association of Canada.
  2. Livio Di Matteo, 2010. "The sustainability of public health expenditures: evidence from the Canadian federation," The European Journal of Health Economics, Springer, vol. 11(6), pages 569-584, December.
  3. Jeremiah Hurley & Emmanuel Guindon, 2008. "Private Health Insurance in Canada," Centre for Health Economics and Policy Analysis Working Paper Series 2008-04, Centre for Health Economics and Policy Analysis (CHEPA), McMaster University, Hamilton, Canada.
  4. Kirk A. Collins, 2008. "The "Taxing" Issue of Interprovincial and Cross-Border Migration," Canadian Public Policy, University of Toronto Press, vol. 34(4), pages 481-500, December.
  5. Di Matteo, Livio, 2014. "Physician numbers as a driver of provincial government health spending in Canadian health policy," Health Policy, Elsevier, vol. 115(1), pages 18-35.

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