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The political economy of public health expenditure and wait times in a public-private mixed health care system


  • Haizhen Mou


This paper investigates the determinants of public health expenditure in a public-private mixed health care system, where a longer wait time for public care is the major difference between public and private sectors. Voter preferences for health care vary according to their age and by income, and public policy choices are part of a multi-dimensional, competitive political equilibrium. We show how equilibrium public health expenditure and wait times depend on demographics and explain why they are independent of the distributions of income and political influence. We also show that population aging may not always lead to more public health expenditure.

Suggested Citation

  • Haizhen Mou, 2012. "The political economy of public health expenditure and wait times in a public-private mixed health care system," Canadian Journal of Economics, Canadian Economics Association, vol. 45(4), pages 1640-1666, November.
  • Handle: RePEc:cje:issued:v:45:y:2012:i:4:p:1640-1666

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    Cited by:

    1. Qian, Qu & Zhuang, Weifen, 2017. "Tax/subsidy and capacity decisions in a two-tier health system with welfare redistributive objective," European Journal of Operational Research, Elsevier, vol. 260(1), pages 140-151.

    More about this item

    JEL classification:

    • H44 - Public Economics - - Publicly Provided Goods - - - Publicly Provided Goods: Mixed Markets
    • I10 - Health, Education, and Welfare - - Health - - - General


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