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Economic Analysis for Health Projects

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  • Hammer, Jeffrey S

Abstract

This paper applies to the health sector a method of project analysis advocated recently by Devarajan, Squire, and Suthiwart-Narueput. A health project evaluation should establish a firm justification for public involvement; establish the counterfactual‹what would happen with and without the project; and determine the fiscal effect of the project and the appropriate levels of fees in conjunction with project evaluation. The evaluation should also acknowledge the fungibility of project resources and examine the incentives both for high-level public servants to shift government resources away from project-funded activities to those that have not been evaluated and for lower-level contractors and civil servants to provide good or bad service. Market failures in health services and insurance markets should serve as a starting point for economic analysis, not as a reason to ignore economics in health projects. Project outputs should be predicted after taking into account the reaction of consumers and providers in the private sector as well as market structures of supply, demand, and equilibrium for health services.

Suggested Citation

  • Hammer, Jeffrey S, 1997. "Economic Analysis for Health Projects," The World Bank Research Observer, World Bank, vol. 12(1), pages 47-71, February.
    • Handle: RePEc:oup:wbrobs:v:12:y:1997:i:1:p:47-71
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    1. repec:pri:rpdevs:hammer_its_all_about_me is not listed on IDEAS
    2. Lant Pritchett & Salimah Samji & Jeffrey S. Hammer, 2012. "It's All about MeE: Using Structured Experiential Learning ('e') to Crawl the Design Space," WIDER Working Paper Series wp-2012-104, World Institute for Development Economic Research (UNU-WIDER).
    3. Chaudhury, Nazmul & Hammer, Jeffrey S., 2003. "Ghost doctors - absenteeism in Bangladeshi health facilities," Policy Research Working Paper Series 3065, The World Bank.
    4. Gertler, Paul J. & Hammer, Jeffrey S., 1997. "Strategies for pricing publicly provided health services," Policy Research Working Paper Series 1762, The World Bank.
    5. Belli, Pedro, 1997. "The comparative advantage of government : a review," Policy Research Working Paper Series 1834, The World Bank.
    6. World Bank, 2002. "Guyana : Public Expenditure Review," World Bank Publications - Reports 14574, The World Bank Group.
    7. Harold Alderman & Peter F. Orazem & Elizabeth M. Paterno, 2001. "School Quality, School Cost, and the Public/Private School Choices of Low-Income Households in Pakistan," Journal of Human Resources, University of Wisconsin Press, vol. 36(2), pages 304-326.
    8. Gertler, Paul J., 1998. "On the road to social health insurance: the Asian experience," World Development, Elsevier, vol. 26(4), pages 717-732, April.
    9. Devarajan, Shantayanan & Hammer, Jeffrey S., 1998. "Risk reduction and public spending," Policy Research Working Paper Series 1869, The World Bank.
    10. Lant Pritchett & Salimah Samji & Jeffrey Hammer, 2012. "It’s All About MeE: Using Structured Experiential Learning (‘e’) to Crawl the Design Space," CID Working Papers 249, Center for International Development at Harvard University.
    11. Shantayanan Devarajan & F. Halsey Rogers, 2002. "World Bank Economists' Forum : Volume 2," World Bank Publications - Books, The World Bank Group, number 15227, December.
    12. Bichaka Fayissa, 2001. "The determinants of infant and child mortality in developing countries: The case of Sub-Sahara Africa," The Review of Black Political Economy, Springer;National Economic Association, vol. 29(2), pages 83-98, December.
    13. Filmer, Deon & Pritchett, Lant, 1997. "Child mortality and public spending on health : how much does money matter?," Policy Research Working Paper Series 1864, The World Bank.
    14. Jack, William, 2000. "Health insurance reform in four Latin American countries : theory and practice," Policy Research Working Paper Series 2492, The World Bank.
    15. Hentschel, Jesko, 1998. "Distinguishing between types of data and methods of collecting them," Policy Research Working Paper Series 1914, The World Bank.

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