Strategic interaction and the determinants of public health expenditures in China: a spatial panel perspective
AbstractThis paper examines determinants of expenditures on public health in China using a panel of 31 Chinese provinces covering the period 1997–2008. In particular, we propose a spatial Durbin panel model with spatial and time-period fixed effects to test whether China’s provinces incorporate the neighbor’s health spending behavior into their own decision making. We mainly find that a provincial government appears to decrease its own health spending as a response to the rise of health spending of its neighboring provinces, supportive of the expenditure externality hypothesis. Important policy implications are drawn. Copyright Springer-Verlag 2013
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Bibliographic InfoArticle provided by Springer in its journal The Annals of Regional Science.
Volume (Year): 50 (2013)
Issue (Month): 1 (February)
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Find related papers by JEL classification:
- I10 - Health, Education, and Welfare - - Health - - - General
- H7 - Public Economics - - State and Local Government; Intergovernmental Relations
- C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
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