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The effect of budget cuts on C-section rates and birth outcomes: Evidence from Spain

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  • Bertoli, Paola
  • Grembi, Veronica
  • Llaneza Hesse, Catalina
  • Vall Castelló, Judit

Abstract

Using data from Spain, we show the impact of significant health-sector budget cuts introduced in 2012 on the rates of cesarean sections and on infant health outcomes at birth, which we use as a proxy for the quality of birth centers. Exploiting a difference-in-differences fixed-effects approach at the hospital level, we estimate a 3% increase in C-sections as a result of the budget restrictions, with no significant consequences on health outcomes at birth. Given the additional evidence in the literature on the negative short- and long-term effects of non-medically indicated C-sections, our paper provides important policy implications for population health.

Suggested Citation

  • Bertoli, Paola & Grembi, Veronica & Llaneza Hesse, Catalina & Vall Castelló, Judit, 2020. "The effect of budget cuts on C-section rates and birth outcomes: Evidence from Spain," Social Science & Medicine, Elsevier, vol. 265(C).
    • Handle: RePEc:eee:socmed:v:265:y:2020:i:c:s0277953620306389
    DOI: 10.1016/j.socscimed.2020.113419
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    References listed on IDEAS

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    More about this item

    Keywords

    Inappropriate healthcare; Health spending cuts; Cesarean sections;
    All these keywords.

    JEL classification:

    • I18 - Health, Education, and Welfare - - Health - - - Government Policy; Regulation; Public Health
    • H51 - Public Economics - - National Government Expenditures and Related Policies - - - Government Expenditures and Health
    • J13 - Labor and Demographic Economics - - Demographic Economics - - - Fertility; Family Planning; Child Care; Children; Youth

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