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The Incidence of Government Expenditures on Education and Health: Microeconomic Evidence from Pakistan

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  • Ahmed Nawaz Hakro

    ()
    (Visiting Scholar, Department of Economics, University of Glasgow, Glasgow, UK.)

  • Muhammed Akram

    ()
    (Lecturer, International Institute of Islamic Economics, International Islamic University Islamabad, Pakistan.)

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    Abstract

    This paper has analyzed the incidence of government expenditures on health and education by using the benefit incidence approach. Recent household level data from the Pakistan Standards of Living Measures (PSLM) has been used to calculate the incidence for Pakistan overall, and at provincial and regional levels, of different education and health services. GINI and concentration coefficients have been used to measure the benefit inequalities of public expenditure. The results demonstrate that education expenditures are progressive in overall Pakistan. The progressiveness hypothesis regarding health expenditure is accepted partially, as the expenditure is progressive for Pakistan overall, but regressive at regional and provincial level of services. Efforts should be directed towards the horizontal and vertical equity in the allocation of resources both at the provincial and regional levels, and greater targeting of rural and low-income groups can make the expenditureprograms more effective and result oriented.

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    Bibliographic Info

    Article provided by Department of Economics, The Lahore School of Economics in its journal Lahore Journal of Economics.

    Volume (Year): 12 (2007)
    Issue (Month): 2 (Jul-Dec)
    Pages: 27-48

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    Handle: RePEc:lje:journl:v:12:y:2007:i:2:p:27-48

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    Web page: http://www.lahoreschoolofeconomics.edu.pk/EconomicsJournal/LJEIntro.aspx
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    Keywords: BenefitIncidence; Health; Education; and Pakistan;

    References

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    Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
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    1. Husain, Fazal & Qasim, Muhammad Ali & Sheikh, Khalid Hameed, 2003. "Analysis of Public Expenditure on Education in Pakistan," MPRA Paper 2722, University Library of Munich, Germany.
    2. David E. Sahn & Stephen D. Younger, 2000. "Expenditure incidence in Africa: microeconomic evidence," Fiscal Studies, Institute for Fiscal Studies, vol. 21(3), pages 329-347, September.
    3. Fazal Husain & Muhammad Ali Qasim & Khalid Hameed Sheikh, 2003. "An Analysis of Public Expenditure on Education in Pakistan," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 42(4), pages 771-780.
    4. Sakellariou, Chris & Patrinos, Harry Anthony, 2004. "Incidence analysis of public support to the private education sector in Cote d'Ivoire," Policy Research Working Paper Series 3231, The World Bank.
    5. Psacharopoulos, George, 1994. "Returns to investment in education: A global update," World Development, Elsevier, vol. 22(9), pages 1325-1343, September.
    6. Muhammad Sabir, 2005. "Gender And Public Spending On Education In Pakistan: A Case Study Of Disaggregated Benefit Incidence," Public Economics 0503005, EconWPA.
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    Cited by:
    1. Mawuli Gaddah & Alistair Munro, 2011. "The Progressivity Of Health Care Services In Ghana," GRIPS Discussion Papers 11-14, National Graduate Institute for Policy Studies.
    2. Mawuli Gaddah & Alistair Munro, 2011. "The Rich or the Poor: Who Gains from Public Education Spending in Ghana?," GRIPS Discussion Papers 11-12, National Graduate Institute for Policy Studies.

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