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Moreon the Effectiveness of Public Spendingon Health Care and Education

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  • International Monetary Fund

Abstract

Using data for a sample of developing and transition countries, this paper estimates the relationship between government spending on health care and education, and social indicators. Unlike previous studies, where social indicators are used as proxies for the unobservable health and education status of the population, this paper estimates a latent variable model. The findings suggest that public social spending is an important determinant of social indicators, particularly in the education sector. Overall, the latent variable approach was found to yield more adequate estimates of social production functions, with larger elasticities of social indicators with respect to income and spending on education than the traditional approach, providing stronger evidence that increases in public spending have a positive impact on social indicators. The study also finds that the millennium goal of universal primary education enrollment by 2015 could be achieved through an increase by one-third, on average, in education spending.

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Bibliographic Info

Paper provided by International Monetary Fund in its series IMF Working Papers with number 02/90.

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Length: 32
Date of creation: 01 May 2002
Date of revision:
Handle: RePEc:imf:imfwpa:02/90

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Cited by:
  1. John Anyanwu & Andrew E. O. Erhijakpor, 2007. "Working Paper 91 - Health Expenditures and Health Outcomes in Africa," Working Paper Series, African Development Bank 226, African Development Bank.
  2. Hiroko Uchimura & Johannes P. Jütting, 2007. "Fiscal Decentralisation, Chinese Style: Good for Health Outcomes?," OECD Development Centre Working Papers 264, OECD Publishing.
  3. World Bank, 2005. "Colombia : Public Expenditure Review," World Bank Other Operational Studies 8559, The World Bank.
  4. Roland Craigwell & Danielle Bynoe & Shane Lowe, 2012. "The effectiveness of government expenditure on education and health care in the Caribbean," International Journal of Development Issues, Emerald Group Publishing, Emerald Group Publishing, vol. 11(1), pages 4-18, April.
  5. Dauda, Risikat Oladoyin S., 2011. "Effect of Public Educational Spending and Macroeconomic Uncertainty on Schooling Outcomes: Evidence from Nigeria," Journal of Economics, Finance and Administrative Science, Universidad ESAN, Universidad ESAN, vol. 16(31), pages 7-21.
  6. John Anyanwu & Andrew E. O. Erhijakpor, 2007. "Working Paper 92 - Education Expenditures and School Enrolment in Africa: Illustrations from Nigeria and Other SANE Countries," Working Paper Series, African Development Bank 227, African Development Bank.
  7. Jacob Novignon & Solomon Olakojo & Justice Nonvignon, 2012. "The effects of public and private health care expenditure on health status in sub-Saharan Africa: new evidence from panel data analysis," Health Economics Review, Springer, Springer, vol. 2(1), pages 1-8, December.
  8. Saleh M. Nsouli & Norbert Funke, 2003. "The New Partnership for Africa's Development (NEPAD) Opportunities and Challenges," IMF Working Papers 03/69, International Monetary Fund.

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