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Evaluating the redistributive impact of public health expenditure using an insurance value approach

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  • Amedeo Spadaro
  • Lucia Mangiavacchi

    ()

  • Ignacio Moral-Arce
  • Marta Adiego-Estella
  • Angela Blanco-Moreno

Abstract

This article analyses the redistributive impact of public health expenditure in Spain using an insurance value approach to compute individual and household’s value of health services non-cash benefit. We model the intensity of use of different health care services using a count data framework on a nationally representative health care survey and then predict probabilities on the 2006 Spanish EU-SILC sample. This allows us to extend disposable income with the expected monetary value of public health services and to compare it with strictly cash income. Since non-cash income due to public health services is associated with health needs, we use needs-adjusted equivalence scales to perform distributional analysis and poverty/inequality comparisons. The results show that public health expenditure in Spain acts progressively on income distribution, and that health in-kind benefits, once considered as part of disposable income, can be extremely effective in reducing poverty and inequality. Copyright Springer-Verlag 2013

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Bibliographic Info

Article provided by Springer in its journal The European Journal of Health Economics.

Volume (Year): 14 (2013)
Issue (Month): 5 (October)
Pages: 775-787

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Handle: RePEc:spr:eujhec:v:14:y:2013:i:5:p:775-787

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Web page: http://link.springer.de/link/service/journals/10198/index.htm

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Related research

Keywords: Health equity; Health insurance; Extended income; In-kind transfers; Income distribution; Needs adjustment; H44; H51; I18; I38; J24;

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