IDEAS home Printed from https://ideas.repec.org/p/gdm/wpaper/5009.html
   My bibliography  Save this paper

Effects of state-level public spending on health on the mortality probability in India

Author

Listed:
  • Mansour Farahani

    (Harvard School of Public Health)

  • S. V. Subramanian

    (Harvard School of Public Health)

  • David Canning

    (Harvard School of Public Health)

Abstract

This study uses the second National Family Health Survey (NFHS-2) of India to estimate the effect of state public health spending on mortality across all age groups, controlling for individual, household, and state-level covariates. We use a state’s gross fiscal deficit as an instrument for its health spending. Our study shows a 10 % increase in public spending on health in India decreases the average probability of death by about 2%, with effects mainly on the young, the elderly, and women. Other major factors affecting mortality are rural residence, household poverty, and access to toilet facilities.

Suggested Citation

  • Mansour Farahani & S. V. Subramanian & David Canning, 2009. "Effects of state-level public spending on health on the mortality probability in India," PGDA Working Papers 5009, Program on the Global Demography of Aging.
    • Handle: RePEc:gdm:wpaper:5009
    as

    Download full text from publisher

    File URL: http://www.hsph.harvard.edu/pgda/WorkingPapers/2009/PGDA_WP_50.pdf
    Download Restriction: no
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Megan Beckett & Julie Da Vanzo & Narayan Sastry & Constantijn Panis & Christine Peterson, 2001. "The Quality of Retrospective Data: An Examination of Long-Term Recall in a Developing Country," Journal of Human Resources, University of Wisconsin Press, vol. 36(3), pages 593-625.
    2. Alistair McGuire & David Parkin & David Hughes & Karen Gerard, 1993. "Econometric analyses of national health expenditures: Can positive economics help to answer normative questions?," Health Economics, John Wiley & Sons, Ltd., vol. 2(2), pages 113-126, July.
    3. Schultz, T Paul, 1993. "Mortality Decline in the Low-Income World: Causes and Consequences," American Economic Review, American Economic Association, vol. 83(2), pages 337-342, May.
    4. Sanjeev Gupta & Marijn Verhoeven & Erwin R. Tiongson, 2003. "Public spending on health care and the poor," Health Economics, John Wiley & Sons, Ltd., vol. 12(8), pages 685-696, August.
    5. Lee, Lung-fei & Rosenzweig, Mark R. & Pitt, Mark M., 1997. "The effects of improved nutrition, sanitation, and water quality on child health in high-mortality populations," Journal of Econometrics, Elsevier, vol. 77(1), pages 209-235, March.
    6. Das Gupta, Monica & Rani, Manju, 2004. "India's public health system - how well does it function at the National level?," Policy Research Working Paper Series 3447, The World Bank.
    7. Deon Filmer & Lant Pritchett, 2001. "Estimating Wealth Effects Without Expenditure Data—Or Tears: An Application To Educational Enrollments In States Of India," Demography, Springer;Population Association of America (PAA), vol. 38(1), pages 115-132, February.
    8. Pierre‐Yves Crémieux & Pierre Ouellette & Caroline Pilon, 1999. "Health care spending as determinants of health outcomes," Health Economics, John Wiley & Sons, Ltd., vol. 8(7), pages 627-639, November.
    9. Douglas Staiger & James H. Stock, 1997. "Instrumental Variables Regression with Weak Instruments," Econometrica, Econometric Society, vol. 65(3), pages 557-586, May.
    10. Cameron,A. Colin & Trivedi,Pravin K., 2005. "Microeconometrics," Cambridge Books, Cambridge University Press, number 9780521848053.
    11. World Bank, 2009. "World Development Indicators 2009," World Bank Publications - Books, The World Bank Group, number 4367, December.
    12. Stanton, Bonita, 1994. "Child health: Equity in the non-industrialized countries," Social Science & Medicine, Elsevier, vol. 38(10), pages 1375-1383, May.
    13. Tanzi,Vito & Schuknecht,Ludger, 2000. "Public Spending in the 20th Century," Cambridge Books, Cambridge University Press, number 9780521662918.
    14. Berman, Peter A., 1998. "Rethinking health care systems: Private health care provision in India," World Development, Elsevier, vol. 26(8), pages 1463-1479, August.
    15. Filmer, Deon*Pritchett, Lant, 1998. "Estimating wealth effects without expenditure data - or tears : with an application to educational enrollments in states of India," Policy Research Working Paper Series 1994, The World Bank.
    16. Sudhir Anand & Martin Ravallion, 1993. "Human Development in Poor Countries: On the Role of Private Incomes and Public Services," Journal of Economic Perspectives, American Economic Association, vol. 7(1), pages 133-150, Winter.
    17. Bidani, Benu & Ravallion, Martin, 1997. "Decomposing social indicators using distributional data," Journal of Econometrics, Elsevier, vol. 77(1), pages 125-139, March.
    18. Musgrove, Philip, 1999. "Public spending on health care: how are different criteria related?," Health Policy, Elsevier, vol. 47(3), pages 207-223, May.
    19. Filmer, Deon & Pritchett, Lant, 1999. "The impact of public spending on health: does money matter?," Social Science & Medicine, Elsevier, vol. 49(10), pages 1309-1323, November.
    20. Kim, Kwangkee & Moody, Philip M., 1992. "More resources better health? A cross-national perspective," Social Science & Medicine, Elsevier, vol. 34(8), pages 837-842, April.
    21. Navaneetham, K. & Dharmalingam, A., 2002. "Utilization of maternal health care services in Southern India," Social Science & Medicine, Elsevier, vol. 55(10), pages 1849-1869, November.
    22. Sonia Bhalotra, 2007. "Spending to save? State health expenditure and infant mortality in India," Health Economics, John Wiley & Sons, Ltd., vol. 16(9), pages 911-928, September.
    23. Gupta, Sanjeev & Verhoeven, Marijn & Tiongson, Erwin R., 2002. "The effectiveness of government spending on education and health care in developing and transition economies," European Journal of Political Economy, Elsevier, vol. 18(4), pages 717-737, November.
    24. David H. Peters & Abdo S. Yazbeck & Rashmi R. Sharma & G. N. V. Ramana & Lant H. Pritchett & Adam Wagstaff, 2002. "Better Health Systems for India's Poor : Findings, Analysis, and Options," World Bank Publications - Books, The World Bank Group, number 14080, December.
    25. Subramanian, S.V. & Nandy, S. & Irving, M. & Gordon, D. & Lambert, H. & Smith, G.D., 2006. "The mortality divide in India: The differential contributions of gender, caste, and standard of living across the life course," American Journal of Public Health, American Public Health Association, vol. 96(5), pages 818-825.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Kaushal, Kaushalendra Kumar & F Ram, Faujdar Ram & Abhishek, Abhishek Singh, 2013. "Public Spending on Health and Childhood Mortality in India," MPRA Paper 48680, University Library of Munich, Germany.
    2. Sulekha Hembram & Sushil Kr. Haldar, 2019. "Beta, sigma and club convergence: Indian experience from 1980 to 2015," Indian Economic Review, Springer, vol. 54(2), pages 343-366, December.
    3. Susanna M Makela & Rakhi Dandona & T R Dilip & Lalit Dandona, 2013. "Social Sector Expenditure and Child Mortality in India: A State-Level Analysis from 1997 to 2009," PLOS ONE, Public Library of Science, vol. 8(2), pages 1-10, February.
    4. Mohamed, Elwasila, 2018. "Bounds Test Cointegration Approach to Examine Factors Contributing to Declining Maternal Mortality Ratio in Sudan (1969-2015)," MPRA Paper 84952, University Library of Munich, Germany.
    5. Bienvenido Ortega & Jesús Sanjuán & Antonio Casquero, 2017. "Determinants of efficiency in reducing child mortality in developing countries. The role of inequality and government effectiveness," Health Care Management Science, Springer, vol. 20(4), pages 500-516, December.
    6. Vogt, Tobias C. & Kluge, Fanny A., 2015. "Can public spending reduce mortality disparities? Findings from East Germany after reunification," The Journal of the Economics of Ageing, Elsevier, vol. 5(C), pages 7-13.
    7. Georgios Nikolopoulos & Pantelis Bagos & Theodoros Lytras & Stefanos Bonovas, 2011. "An Ecological Study of the Determinants of Differences in 2009 Pandemic Influenza Mortality Rates between Countries in Europe," PLOS ONE, Public Library of Science, vol. 6(5), pages 1-8, May.
    8. Mohanty, Ranjan Kumar & Behera, Deepak Kumar, 2020. "How Effective is Public Health Care Expenditure in Improving Health Outcome? An Empirical Evidence from the Indian States," Working Papers 20/300, National Institute of Public Finance and Policy.
    9. Kato, Kepha & Mugarura, Alex & Keberuka, Will & Matovu, Fred & Yawe, Bruno L., 2018. "The Effect of Public Health Spending on Under-five Mortality Rate in Uganda," African Journal of Economic Review, African Journal of Economic Review, vol. 6(1), January.
    10. Francesco Longo & Karl Claxton & James Lomas & Stephen Martin, 2020. "Does public long-term care expenditure improve care-related quality of life in England?," Working Papers 172cherp, Centre for Health Economics, University of York.
    11. Jessica Ochalek & Miqdad Asaria & Pei Fen Chuar & James Lomas & Sumit Mazumdar & Karl Claxton, 2019. "Assessing health opportunity costs for the Indian health care systems," Working Papers 161cherp, Centre for Health Economics, University of York.
    12. Jonas Minet Kinge & Jostein Grytten, 2021. "The impact of primary care physician density on perinatal health: Evidence from a natural experiment," Health Economics, John Wiley & Sons, Ltd., vol. 30(12), pages 2974-2994, December.
    13. Mulcahy, Patrick & Mahal, Ajay & McPake, Barbara & Kane, Sumit & Ghosh, Prabir Kumar & Lee, John Tayu, 2021. "Is there an association between public spending on health and choice of healthcare providers across socioeconomic groups in India? - Evidence from a national sample," Social Science & Medicine, Elsevier, vol. 285(C).
    14. Prashant Kumar Singh, 2013. "Trends in Child Immunization across Geographical Regions in India: Focus on Urban-Rural and Gender Differentials," PLOS ONE, Public Library of Science, vol. 8(9), pages 1-11, September.
    15. Runu Bhakta, 2014. "Impact of public spending on health and education of children in India: A Panel data simultaneous equation model," Indira Gandhi Institute of Development Research, Mumbai Working Papers 2014-049, Indira Gandhi Institute of Development Research, Mumbai, India.
    16. Biswajit Maitra & C.K. Mukhopadhyay, 2012. "Public spending on education, health care and economic growth in selected countries of Asia and the Pacific," Asia-Pacific Development Journal, United Nations Economic and Social Commission for Asia and the Pacific (ESCAP), vol. 19(2), pages 19-48, December.
    17. Barenberg, Andrew J. & Basu, Deepankar & Soylu, Ceren, 2015. "The Effect of Public Health Expenditure on Infant Mortality: Evidence from a Panel of Indian States, 1983-84 to 2011-12," UMASS Amherst Economics Working Papers 2015-19, University of Massachusetts Amherst, Department of Economics.
    18. Dhiman Das, 2017. "Public expenditure and healthcare utilization: the case of reproductive health care in India," International Journal of Health Economics and Management, Springer, vol. 17(4), pages 473-494, December.
    19. Beth Woods & Paul Revill & Mark Sculpher & Karl Claxton, 2015. "Country-level cost-effectiveness thresholds: initial estimates and the need for further research," Working Papers 109cherp, Centre for Health Economics, University of York.
    20. Iván Mejía-Guevara & Aditi Krishna & Daniel J. Corsi & S.V. Subramanian, 2015. "Individual and Ecological Variation in Child Undernutrition in India," Journal of South Asian Development, , vol. 10(2), pages 168-198, August.
    21. Jiannan Li & Bocong Yuan, 2019. "Understanding the effectiveness of government health expenditure in improving health equity: Preliminary evidence from global health expenditure and child mortality rate," International Journal of Health Planning and Management, Wiley Blackwell, vol. 34(4), pages 1968-1979, October.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Gebregziabher, Fiseha & Niño-Zarazúa, Miguel, 2014. "Social spending and aggregate welfare in developing and transition economies," WIDER Working Paper Series 082, World Institute for Development Economic Research (UNU-WIDER).
    2. Mohanty, Ranjan Kumar & Behera, Deepak Kumar, 2020. "How Effective is Public Health Care Expenditure in Improving Health Outcome? An Empirical Evidence from the Indian States," Working Papers 20/300, National Institute of Public Finance and Policy.
    3. ATAKE, Esso - Hanam, 2014. "Financement Public des dépenses de santé et survie infantile au Togo [Public funding of health expenditure and infant survival in Togo]," MPRA Paper 59320, University Library of Munich, Germany, revised 26 Oct 2014.
    4. AfDB AfDB, 2007. "Working Paper 91 - Health Expenditures and Health Outcomes in Africa," Working Paper Series 2224, African Development Bank.
    5. AfDB AfDB, 2007. "Working Paper 91 - Health Expenditures and Health Outcomes in Africa," Working Paper Series 2304, African Development Bank.
    6. Bienvenido Ortega & Jesús Sanjuán & Antonio Casquero, 2017. "Determinants of efficiency in reducing child mortality in developing countries. The role of inequality and government effectiveness," Health Care Management Science, Springer, vol. 20(4), pages 500-516, December.
    7. Sonia Bhalotra, 2007. "Spending to save? State health expenditure and infant mortality in India," Health Economics, John Wiley & Sons, Ltd., vol. 16(9), pages 911-928, September.
    8. Fiseha Gebregziabher & Miguel Niño-Zarazúa, 2014. "Social Spending and Aggregate Welfare in Developing and Transition Economies," WIDER Working Paper Series wp-2014-082, World Institute for Development Economic Research (UNU-WIDER).
    9. Mr. Emanuele Baldacci & Mr. Larry Q Cui & Mr. Benedict J. Clements & Mr. Sanjeev Gupta, 2004. "Social Spending, Human Capital, and Growth in Developing Countries: Implications for Achieving the MDGs," IMF Working Papers 2004/217, International Monetary Fund.
    10. Marwa Farag & A. Nandakumar & Stanley Wallack & Dominic Hodgkin & Gary Gaumer & Can Erbil, 2013. "Health expenditures, health outcomes and the role of good governance," International Journal of Health Economics and Management, Springer, vol. 13(1), pages 33-52, March.
    11. Kaushal, Kaushalendra Kumar & F Ram, Faujdar Ram & Abhishek, Abhishek Singh, 2013. "Public Spending on Health and Childhood Mortality in India," MPRA Paper 48680, University Library of Munich, Germany.
    12. Faisal Abbas & Haroon Sarwar Awan, 2018. "What Determines Health Status of Population in Pakistan?," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 139(1), pages 1-23, August.
    13. Carl Grekou & Romain Perez, 2014. "Child Mortality in sub-Saharan Africa: Why Public Health Spending Matters," EconomiX Working Papers 2014-28, University of Paris Nanterre, EconomiX.
    14. Micheal Kofi Boachie & Tatjana Põlajeva & Albert Opoku Frimpong, 2020. "Infant Mortality in Low- and Middle-income Countries: Does Government Health Spending Matter?," Journal of Development Policy and Practice, , vol. 5(1), pages 54-73, January.
    15. Baldacci, Emanuele & Clements, Benedict & Gupta, Sanjeev & Cui, Qiang, 2008. "Social Spending, Human Capital, and Growth in Developing Countries," World Development, Elsevier, vol. 36(8), pages 1317-1341, August.
    16. Yusuke Kamiya, 2010. "Determinants of Health in Developing Countries:Cross-Country Evidence," OSIPP Discussion Paper 10E009, Osaka School of International Public Policy, Osaka University.
    17. Besstremyannaya, Galina, 2015. "Measuring the effect of health insurance companies on the quality of healthcare systems with kernel and parametric regressions," Applied Econometrics, Russian Presidential Academy of National Economy and Public Administration (RANEPA), vol. 38(2), pages 3-20.
    18. Lisa Chauvet & Flore Gubert & Sandrine Mesplé-Somps, 2009. "Are Remittances More Effective Than Aid To Reduce Child Mortality ? An Empirical Assessment using Inter and Intra-Country Data," Working Papers halshs-00966367, HAL.
    19. Omar Azfar & Tugrul Gurgur, 2008. "Does corruption affect health outcomes in the Philippines?," Economics of Governance, Springer, vol. 9(3), pages 197-244, July.
    20. Galina Besstremyannaya, 2014. "Urban inequity in the performance of social health insurance system: evidence from Russian regions," Working Papers w0204, Center for Economic and Financial Research (CEFIR).

    More about this item

    Keywords

    Public spending; health; mortality probability; India;
    All these keywords.

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gdm:wpaper:5009. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Cinzia Smothers (email available below). General contact details of provider: https://edirc.repec.org/data/degraus.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.