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How Effective is Public Health Care Expenditure in Improving Health Outcome? An Empirical Evidence from the Indian States

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  • Mohanty, Ranjan Kumar

    (National Institute of Public Finance and Policy)

  • Behera, Deepak Kumar

    (Asian Institute of Public Health University)

Abstract

The literature on public health spending and health outcomes remain an important contribution in implementing public health policies in developing countries. The purpose of this study is to investigate the effects of public health expenditure on various proximate and ultimate health outcomes during 2005-2016 using panel fixed-effects models across 28 Indian States. The empirical results show that per capita public health care expenditure has an adverse effect on the infant and child mortality rate, malaria cases, and a favourable effect on life expectancy, immunization coverage across states, while this impact is relatively weak in the case of High-Focus States. The study is very relevant in the context of achieving the targets of Sustainable Development Goals and moving towards the universal health coverage at the State level in India. It suggests for enhancement of public health spending, and improvement of health infrastructure among the Indian States.

Suggested Citation

  • 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.
    • Handle: RePEc:npf:wpaper:20/300
    Note: Working Paper 300, 2020
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    More about this item

    Keywords

    Public Health Expenditure ; Life Expectancy ; Infant Mortality ; Child Mortality ; Fixed Effects Model ; Indian States;
    All these keywords.

    JEL classification:

    • H51 - Public Economics - - National Government Expenditures and Related Policies - - - Government Expenditures and Health
    • I10 - Health, Education, and Welfare - - Health - - - General
    • I18 - Health, Education, and Welfare - - Health - - - Government Policy; Regulation; Public Health
    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models

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