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Strategic interaction and the determinants of public health expenditures in China: a spatial panel perspective

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  • Yihua Yu
  • Li Zhang
  • Fanghua Li
  • Xinye Zheng

    ()

Abstract

This 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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File URL: http://hdl.handle.net/10.1007/s00168-011-0488-7
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Bibliographic Info

Article provided by Springer in its journal The Annals of Regional Science.

Volume (Year): 50 (2013)
Issue (Month): 1 (February)
Pages: 203-221

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Handle: RePEc:spr:anresc:v:50:y:2013:i:1:p:203-221

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Keywords: I10; H7; C23;

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References

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Cited by:
  1. Zheng, Xinye & Wang, Jing & Li, Xilu & Yu, Yihua, 2013. "On the supply of China's healthcare resources in a decentralized healthcare system," MPRA Paper 56030, University Library of Munich, Germany.

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