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Does Health-Care Spending Crowd Out Other Provincial Government Expenditures?

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Listed:
  • Stuart Landon
  • Melville L. McMillan
  • Vijay Muralidharan
  • Mark Parsons

Abstract

Health spending, the largest component of provincial government spending, has risen significantly over the past decade. It has been asserted that larger health expenditures have caused provincial governments to spend less on other types of government services. Using a panel of province-level data for the period 1988/89 to 2003/04, this study provides a test of the hypothesis that health spending has crowded out other types of spending. The results indicate that, for the period studied, there is no evidence that increased provincial government health expenditures resulted in lower levels of spending on other categories of government provided goods and services.

Suggested Citation

  • Stuart Landon & Melville L. McMillan & Vijay Muralidharan & Mark Parsons, 2006. "Does Health-Care Spending Crowd Out Other Provincial Government Expenditures?," Canadian Public Policy, University of Toronto Press, vol. 32(2), pages 121-142, June.
  • Handle: RePEc:cpp:issued:v:32:y:2006:i:2:p:121-142
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    References listed on IDEAS

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    1. Hettich,Walter & Winer,Stanley L., 2005. "Democratic Choice and Taxation," Cambridge Books, Cambridge University Press, number 9780521021807, May.
    2. Karlsson, Sune & Lothgren, Mickael, 2000. "On the power and interpretation of panel unit root tests," Economics Letters, Elsevier, vol. 66(3), pages 249-255, March.
    3. Michael Marlow & Alden Shiers, 1999. "Do law enforcement expenditures crowd-out public education expenditures?," Applied Economics, Taylor & Francis Journals, vol. 31(2), pages 255-266.
    4. Wallace E. Oates, 1999. "An Essay on Fiscal Federalism," Journal of Economic Literature, American Economic Association, vol. 37(3), pages 1120-1149, September.
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    Cited by:

    1. Kirk A. Collins, 2008. "The "Taxing" Issue of Interprovincial and Cross-Border Migration," Canadian Public Policy, University of Toronto Press, vol. 34(4), pages 481-500, December.
    2. Livio Di Matteo, 2010. "The sustainability of public health expenditures: evidence from the Canadian federation," The European Journal of Health Economics, Springer;Deutsche Gesellschaft für Gesundheitsökonomie (DGGÖ), vol. 11(6), pages 569-584, December.
    3. Di Matteo, Livio, 2014. "Physician numbers as a driver of provincial government health spending in Canadian health policy," Health Policy, Elsevier, vol. 115(1), pages 18-35.
    4. Jeremiah Hurley & Emmanuel Guindon, 2008. "Private Health Insurance in Canada," Centre for Health Economics and Policy Analysis Working Paper Series 2008-04, Centre for Health Economics and Policy Analysis (CHEPA), McMaster University, Hamilton, Canada.

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