Welfare State and Life Satisfaction: Evidence from Public Health Care
Abstract
We examine the effect of publicly provided health care on welfare by combining local level data on public health care, and individual level data on life satisfaction. It is shown that relatively high expenditures in health care have a positive effect on individuals' life satisfaction in our data. We further illustrate how life satisfaction data can be used to directly test theoretical hypotheses about how the welfare effect of public provision should vary among different groups in the population. We find some evidence for an "ends-against-the-middle" equilibrium (Epple and Romano, 1996) in the provision of public health care, where middle-income individuals prefer higher public expenditure at the margin than low-income or high-income individuals. Further, our results indicate that valuation for health care depends on individual political orientation.Download Info
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Paper provided by Tinbergen Institute in its series Tinbergen Institute Discussion Papers with number 07-053/3.Length:
Date of creation: 16 Jul 2007
Date of revision:
Handle: RePEc:dgr:uvatin:20070053
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Web page: http://www.tinbergen.nl
Related research
Keywords: Life satisfaction; public provision; health care;Other versions of this item:
- Kaisa Kotakorpi & Jani-Petri Laamanen, 2010. "Welfare State and Life Satisfaction: Evidence from Public Health Care," Economica, London School of Economics and Political Science, vol. 77(307), pages 565-583, 07.
- H44 - Public Economics - - Publicly Provided Goods - - - Publicly Provided Goods: Mixed Markets
- I18 - Health, Education, and Welfare - - Health - - - Government Policy; Regulation; Public Health
This paper has been announced in the following NEP Reports:
- NEP-ALL-2007-08-08 (All new papers)
- NEP-HAP-2007-08-08 (Economics of Happiness)
- NEP-HEA-2007-08-08 (Health Economics)
References
References listed on IDEASPlease report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
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Citations
Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.Cited by:
- Seoyong Kim & Donggeun Kim, 2012. "Does Government Make People Happy?: Exploring New Research Directions for Government’s Roles in Happiness," Journal of Happiness Studies, Springer, vol. 13(5), pages 875-899, October.
- Andrés Rodríguez-Pose & Kristina Maslauskaite, 2011.
"Can policy make us happier? Individual characteristics, socio-economic factors and life satisfaction in Central and Eastern Europe,"
Cambridge Journal of Regions, Economy and Society,
Cambridge Political Economy Society, vol. 5(1), pages 77-96.
- Andrés Rodríguez-Pose & Kristina Maslauskaite, 2011. "Can policy make us happier? Individual characteristics, socioeconomic factors, and life satisfaction in Central and Eastern Europe," Working Papers 2011-19, Instituto Madrileño de Estudios Avanzados (IMDEA) Ciencias Sociales.
- Yamamura, Eiji, 2010.
"The effects of information asymmetry and government size on happiness: A case study from Japan,"
MPRA Paper
27182, University Library of Munich, Germany.
- Eiji Yamamura, 2012. "The Effects of Information Asymmetry and Government Size on Happiness: A Case Study from Japan," The IUP Journal of Governance and Public Policy, IUP Publications, vol. 0(1), pages 7-20, March.
- Zohal Hessami, 2010.
"The Size and Composition of Government Spending in Europe and Its Impact on Well-Being,"
Kyklos,
Wiley Blackwell, vol. 63(3), pages 346-382, 08.
- Hessami, Zohal, 2010. "The Size and Composition of Government Spending in Europe and Its Impact on Well-Being," MPRA Paper 21195, University Library of Munich, Germany.
- Yamamura, Eiji, 2012.
"Effect of social capital on income redistribution preferences: comparison of neighborhood externality between high- and low-income households,"
MPRA Paper
36181, University Library of Munich, Germany.
- Yamamura, Eiji, 2011. "Effect of social capital on income distribution preferences: comparison of neighborhood externality between high- and low-income households," MPRA Paper 32557, University Library of Munich, Germany.
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