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Impact of public spending on health and education of children in India: A Panel data simultaneous equation model

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  • Runu Bhakta

    (Indira Gandhi Institute of Development Research)

Abstract

The basic objective of the study is to examine the impact of public expenditure on health and education after incorporating the linkages between health status of children and their educational achievements in India. This study has developed a simultaneous equation model among health and education of children, and public expenditure on these sectors. Three stage least squares technique is applied to get consistent and efficient estimates of the system. The results show that bad health status among children, captured by high IMR, is responsible to have lower enrolment rates and high dropout rates in primary level. In addition, public expenditure on Supplementary Nutritional Program has indirect positive impact on education through the improvements in health status of children whereas additional expenditure on elementary education has positive impact on enrolment rates, but at diminishing rate. Moreover, public expenditure on elementary education has greater impact on enrolment as compared to dropout rates.

Suggested Citation

  • 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.
    • Handle: RePEc:ind:igiwpp:2014-049
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    File URL: http://www.igidr.ac.in/pdf/publication/WP-2014-049.pdf
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    References listed on IDEAS

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    7. 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.
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    Cited by:

    1. Venkatanarayana Motkuri & Ellanki Revathi, 2023. "Public Expenditure on Education in India: Centre–State Allocations," Journal of Development Policy and Practice, , vol. 8(2), pages 194-208, July.

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    More about this item

    Keywords

    Public Expenditure; Education; Health; SEM; 3SLS; IMR; GER; NER; Dropout Rates;
    All these keywords.

    JEL classification:

    • H51 - Public Economics - - National Government Expenditures and Related Policies - - - Government Expenditures and Health
    • H52 - Public Economics - - National Government Expenditures and Related Policies - - - Government Expenditures and Education
    • I18 - Health, Education, and Welfare - - Health - - - Government Policy; Regulation; Public Health
    • I28 - Health, Education, and Welfare - - Education - - - Government Policy
    • C33 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Models with Panel Data; Spatio-temporal Models

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