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Determinants of public health expenditure: some evidence from Indian states

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  • Tauhidur Rahman

Abstract

This study examines the evolution of public health expenditure in India. A panel data model is used to explain the main factors which affect public health expenditure in the period 1971 to 1991. The empirical results show that the key determinants in the explanation of the regional health expenditure are real state per capita income and literacy rate, while other structural demand variables such as the proportion of the state population over age 60, population per primary health care center and population per doctor are statistically insignificant factors. An income elasticity of 0.47 implies that health care is not a luxury good.

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  • Tauhidur Rahman, 2008. "Determinants of public health expenditure: some evidence from Indian states," Applied Economics Letters, Taylor & Francis Journals, vol. 15(11), pages 853-857.
    • Handle: RePEc:taf:apeclt:v:15:y:2008:i:11:p:853-857
    DOI: 10.1080/13504850600770970
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    2. Yun, Wong Sing, 2021. "Impact of Demographical Structural Change on Public Health Care Expenditure in Malaysia," Asian Journal of Applied Economics, Kasetsart University, Center for Applied Economics Research, vol. 28(2).
    3. Silvia Fresneda & Nuria Reguera & Fernando Casas, 2021. "De-agentification Process in Spanish Regional Governments," Hacienda Pública Española / Review of Public Economics, IEF, vol. 236(1), pages 39-64, March.
    4. Masayoshi Hayashi, 2011. "The effects of medical factors on transfer deficits in Public Assistance in Japan: a quantile regression analysis," International Journal of Health Economics and Management, Springer, vol. 11(4), pages 287-307, December.
    5. Hui Jin & Xinyi Qian, 2020. "How the Chinese Government Has Done with Public Health from the Perspective of the Evaluation and Comparison about Public-Health Expenditure," IJERPH, MDPI, vol. 17(24), pages 1-16, December.
    6. Mohanty, Biswajit & Bhanumurthy, N. R. & Dastidar, Ananya Ghosh, 2017. "What explains Regional Imbalances in Infrastructure?: Evidence from Indian States," Working Papers 17/197, National Institute of Public Finance and Policy.
    7. Ifunanyachukwu N. & Risikat O. S. Dauda, 2019. "Education, Health Expenditure and the Quality of Life in Nigeria," Academic Journal of Economic Studies, Faculty of Finance, Banking and Accountancy Bucharest,"Dimitrie Cantemir" Christian University Bucharest, vol. 5(4), pages 94-102, December.
    8. Datta, Sandip, 2020. "Political competition and public healthcare expenditure: Evidence from Indian states," Social Science & Medicine, Elsevier, vol. 244(C).
    9. Biswajit Mohanty & N.R. Bhanumurthy & Ananya Ghosh Dastidar, 2017. "What explains regional imbalances in public infrastructure expenditure? Evidence from Indian states," Asia-Pacific Development Journal, United Nations Economic and Social Commission for Asia and the Pacific (ESCAP), vol. 24(2), pages 113-139, December.
    10. Kumar, Kaushalendra & Singh, Abhishek & James, K.S. & McDougal, Lotus & Raj, Anita, 2020. "Gender bias in hospitalization financing from borrowings, selling of assets, contribution from relatives or friends in India," Social Science & Medicine, Elsevier, vol. 260(C).
    11. Olayiwola, Saheed O. & Osakede, Uche Abamba & Adeyemi, Francis O., 2023. "Fiscal Sustainability and Demographic Transition in Nigeria," African Journal of Economic Review, African Journal of Economic Review, vol. 12(1), March.
    12. Deepak Kumar BEHERA & Umakant DASH, 2017. "Impact of GDP and tax revenue on health care financing: An empirical investigation from Indian states," Theoretical and Applied Economics, Asociatia Generala a Economistilor din Romania - AGER, vol. 0(2(611), S), pages 249-262, Summer.
    13. Nilgun Yavuz & Veli Yilanci & Zehra Ozturk, 2013. "Is health care a luxury or a necessity or both? Evidence from Turkey," The European Journal of Health Economics, Springer;Deutsche Gesellschaft für Gesundheitsökonomie (DGGÖ), vol. 14(1), pages 5-10, February.
    14. Samir Ul Hassan & Biswambhara Mishra, 2017. "Does Infrastructure Matters in Government Spending? A Case Study of Jammu and Kashmir (India) with Cointegration Approach," Journal of Infrastructure Development, India Development Foundation, vol. 9(2), pages 82-97, December.
    15. Huarng, Kun-Huang & Yu, Tiffany Hui-Kuang, 2015. "Healthcare expenditure with causal recipes," Journal of Business Research, Elsevier, vol. 68(7), pages 1570-1573.
    16. Prasant Kumar Panda & Aliva Dipali Panda, 2013. "Determinants of state level financing of health: Panel data evidence from Southern Indian states," The Empirical Econometrics and Quantitative Economics Letters, Faculty of Economics, Chiang Mai University, vol. 1(2), pages 41-52, June.

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