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Determinants of Public Expenditure on Health in India: The Panel Data Estimates

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  • Shailender Kumar Hooda

    (Institute for Studies in Industrial Development, New Delhi)

Abstract

There is high inter-state variation in public expenditure on health across states of India. This paper examines the degree to which this discrepancy in health expenditure is explained by income and other socio-economic-demographic factors. Findings show that the responsiveness of health spending is sensitive (with elasticity less than one) to change in per capita income of the state. The fiscal capacity and participation of people in politics of a particular state and health policy reforms initiated in 2005 play a significant role in positively influencing the government health expenditure. The demographic factors, however, are less likely to influence the spending on health.

Suggested Citation

  • Shailender Kumar Hooda, 2015. "Determinants of Public Expenditure on Health in India: The Panel Data Estimates," Working Papers 177, Institute for Studies in Industrial Development (ISID).
    • Handle: RePEc:sid:wpaper:177
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    Cited by:

    1. Tiken Das & Diganta Das, 2022. "Does the augmentation of monetary and non‐monetary factors prerequisite for the improvement of health outcomes? Evidence from the Indian states," International Journal of Health Planning and Management, Wiley Blackwell, vol. 37(2), pages 1131-1156, March.
    2. Deepak Kumar BEHERA & Umakant DASH, 2017. "Impact of GDP and tax revenue on health care financing: An empirical investigation from Indian states," Theoretical and Applied Economics, Asociatia Generala a Economistilor din Romania - AGER, vol. 0(2(611), S), pages 249-262, Summer.

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    More about this item

    Keywords

    Panel Regression; Fiscal Capacity; Expenditure Elasticity; Political Participation; India;
    All these keywords.

    JEL classification:

    • H51 - Public Economics - - National Government Expenditures and Related Policies - - - Government Expenditures and Health

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