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General equilibrium effects of spatial structure: Health outcomes and health behaviours in Scotland

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  • Bhattacharjee, Arnab
  • Maiti, Taps
  • Petrie, Dennis

Abstract

Socioeconomic characteristics, health behaviours, and the utilisation and quality of healthcare are prime examples of socioeconomic, cultural and demographic phenomena that are inherently spatial in nature. Understanding the spatial structure of these factors is particularly relevant in order to efficiently allocate resources. This paper explores the general equilibrium spatial structure of health outcomes and health behaviours across Scottish health boards using a variant of the spatial Durbin model which allows for an a priori unknown spatial weights matrix. The results suggest that there is substantial spatial dynamics in behaviours across health boards and that these spillovers are, as expected, asymmetric. We then demonstrate how the model can be used to estimate the behavioural and health impact of a targeted education policy within each health board taking into account both the direct effect on the particular health board itself and the indirect effect in terms of spillovers. The results illustrate how the dynamic effects should play a large role in designing place based policies that maximise the overall effectiveness of health interventions. Taking into account the spatial dynamics allows policy makers to better target resources and interventions on particular clusters where the direct and indirect spillover benefits are likely to be the greatest in terms of improving health.

Suggested Citation

  • Bhattacharjee, Arnab & Maiti, Taps & Petrie, Dennis, 2014. "General equilibrium effects of spatial structure: Health outcomes and health behaviours in Scotland," Regional Science and Urban Economics, Elsevier, vol. 49(C), pages 286-297.
    • Handle: RePEc:eee:regeco:v:49:y:2014:i:c:p:286-297
    DOI: 10.1016/j.regsciurbeco.2014.10.003
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    2. Zhang Zhen & Bhattacharjee Arnab & Marques João & Maiti Tapabrata, 2021. "Spatio-Temporal Patterns in Portuguese Regional Fertility Rates: A Bayesian Approach for Spatial Clustering of Curves," Journal of Official Statistics, Sciendo, vol. 37(3), pages 611-653, September.
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    4. Xueqian Song & Yongping Wei & Wei Deng & Shaoyao Zhang & Peng Zhou & Ying Liu & Jiangjun Wan, 2019. "Spatio-Temporal Distribution, Spillover Effects and Influences of China’s Two Levels of Public Healthcare Resources," IJERPH, MDPI, vol. 16(4), pages 1-18, February.

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    More about this item

    Keywords

    Spatial econometrics; Spatial weights matrix; Spatial Durbin model; Health outcomes; Health behaviours; Health care utilisation;
    All these keywords.

    JEL classification:

    • I12 - Health, Education, and Welfare - - Health - - - Health Behavior
    • I18 - Health, Education, and Welfare - - Health - - - Government Policy; Regulation; Public Health
    • C33 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Models with Panel Data; Spatio-temporal Models

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