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Economic Analysis for Health Projects

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  • Hammer, Jeffrey S

Abstract

This paper applies to the health sector a method of project analysis advocated recently by Devarajan, Squire, and Suthiwart-Narueput. A health project evaluation should establish a firm justification for public involvement; establish the counterfactual‹what would happen with and without the project; and determine the fiscal effect of the project and the appropriate levels of fees in conjunction with project evaluation. The evaluation should also acknowledge the fungibility of project resources and examine the incentives both for high-level public servants to shift government resources away from project-funded activities to those that have not been evaluated and for lower-level contractors and civil servants to provide good or bad service. Market failures in health services and insurance markets should serve as a starting point for economic analysis, not as a reason to ignore economics in health projects. Project outputs should be predicted after taking into account the reaction of consumers and providers in the private sector as well as market structures of supply, demand, and equilibrium for health services.

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Bibliographic Info

Article provided by World Bank Group in its journal World Bank Research Observer.

Volume (Year): 12 (1997)
Issue (Month): 1 (February)
Pages: 47-71

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Handle: RePEc:oup:wbrobs:v:12:y:1997:i:1:p:47-71

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References

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  1. Anand, Sudhir & Hanson, Kara, 1997. "Disability-adjusted life years: a critical review," Journal of Health Economics, Elsevier, vol. 16(6), pages 685-702, December.
  2. Paul Gertler & John Molyneaux, 1994. "How economic development and family planning programs combined to reduce indonesian fertility," Demography, Springer, vol. 31(1), pages 33-63, February.
  3. Alderman, H. & Gertler, P., 1989. "The Substitutability Of Public And Private Health Care For The Treatment Of Children In Pakistan," Papers 57, World Bank - Living Standards Measurement.
  4. Pitt, Mark M & Rosenzweig, Mark R & Gibbons, Donna M, 1993. "The Determinants and Consequences of the Placement of Government Programs in Indonesia," World Bank Economic Review, World Bank Group, vol. 7(3), pages 319-48, September.
  5. Anand, S. & Hanson, K., 1995. "Disability-Adjusted Life Years: A Critical Review," Economics Series Working Papers 99174, University of Oxford, Department of Economics.
  6. Korte, R. & Richter, Heide & Merkle, F. & Görgen, H., 1992. "Financing health services in Sub-Saharan Africa: Options for decision makers during adjustment," Social Science & Medicine, Elsevier, vol. 34(1), pages 1-9, January.
  7. Hammer, Jeffrey S., 1993. "Prices and protocols in public health care," Policy Research Working Paper Series 1131, The World Bank.
  8. Alderman, Harold & Lavy, Victor, 1996. "Household Responses to Public Health Services: Cost and Quality Tradeoffs," World Bank Research Observer, World Bank Group, vol. 11(1), pages 3-22, February.
  9. Hammer, Jeffrey S, 1993. "The Economics of Malaria Control," World Bank Research Observer, World Bank Group, vol. 8(1), pages 1-22, January.
  10. Kloos, Helmut, 1990. "Utilization of selected hospitals, health centres and health stations in Central, Southern and Western Ethiopia," Social Science & Medicine, Elsevier, vol. 31(2), pages 101-114, January.
  11. Hammer, Jeffrey S. & Berman, Peter, 1995. "Ends and means in public health policy in developing countries," Health Policy, Elsevier, vol. 32(1-3), pages 29-45.
  12. Kim, A. & Benton, B., 1995. "Cost-Benefit Analysis of the Onchocerciasis Control Program (OCP)," Papers 282, World Bank - Technical Papers.
  13. Pritchett, Lant H. & DEC, 1994. "Desired fertility and the impact of population policies," Policy Research Working Paper Series 1273, The World Bank.
  14. Germano Mwabu & Martha Ainsworth & Andrew Nyamete, 1993. "Quality of Medical Care and Choice of Medical Treatment in Kenya: An Empirical Analysis," Journal of Human Resources, University of Wisconsin Press, vol. 28(4), pages 838-862.
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Cited by:
  1. Bichaka Fayissa, 2001. "The determinants of infant and child mortality in developing countries: The case of Sub-Sahara Africa," The Review of Black Political Economy, Springer, vol. 29(2), pages 83-98, December.
  2. Gertler, Paul J. & Hammer, Jeffrey S., 1997. "Strategies for pricing publicly provided health services," Policy Research Working Paper Series 1762, The World Bank.
  3. Harold Alderman & Peter F. Orazem & Elizabeth M. Paterno, 2001. "School Quality, School Cost, and the Public/Private School Choices of Low-Income Households in Pakistan," Journal of Human Resources, University of Wisconsin Press, vol. 36(2), pages 304-326.
  4. Filmer, Deon & Pritchett, Lant, 1997. "Child mortality and public spending on health : how much does money matter?," Policy Research Working Paper Series 1864, The World Bank.
  5. Pritchett, Lant & Samji, Salimah & Hammer, Jeffrey, 2012. "It.s All About MeE: Using Structured Experiential Learning (.e.) to Crawl the Design Space," Working Paper Series UNU-WIDER Research Paper , World Institute for Development Economic Research (UNU-WIDER).
  6. Shantayanan Devarajan & F. Halsey Rogers, 2002. "World Bank Economists' Forum : Volume 2," World Bank Publications, The World Bank, number 15227, October.
  7. Belli, Pedro, 1997. "The comparative advantage of government : a review," Policy Research Working Paper Series 1834, The World Bank.
  8. Jack, William, 2000. "Health insurance reform in four Latin American countries : theory and practice," Policy Research Working Paper Series 2492, The World Bank.
  9. Hentschel, Jesko, 1998. "Distinguishing between types of data and methods of collecting them," Policy Research Working Paper Series 1914, The World Bank.
  10. World Bank, 2002. "Guyana : Public Expenditure Review," World Bank Other Operational Studies 14574, The World Bank.
  11. Devarajan, Shantayanan & Hammer, Jeffrey S., 1998. "Risk reduction and public spending," Policy Research Working Paper Series 1869, The World Bank.
  12. Gertler, Paul J., 1998. "On the road to social health insurance: the Asian experience," World Development, Elsevier, vol. 26(4), pages 717-732, April.
  13. Chaudhury, Nazmul & Hammer, Jeffrey S., 2003. "Ghost doctors - absenteeism in Bangladeshi health facilities," Policy Research Working Paper Series 3065, The World Bank.

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