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Economic Analysis for Health Projects

  • Hammer, Jeffrey S

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.

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Article provided by World Bank Group in its journal World Bank Research Observer.

Volume (Year): 12 (1997)
Issue (Month): 1 (February)
Pages: 47-71

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Handle: RePEc:oup:wbrobs:v:12:y:1997:i:1:p:47-71
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  1. Hammer, Jeffrey S, 1993. "The Economics of Malaria Control," World Bank Research Observer, World Bank Group, vol. 8(1), pages 1-22, January.
  2. Pitt, Mark M & Rosenzweig, Mark R & Gibbons, Donna M, 1993. "The Determinants and Consequences of the Placement of Government Programs in Indonesia," World Bank Economic Review, World Bank Group, vol. 7(3), pages 319-48, September.
  3. Kloos, Helmut, 1990. "Utilization of selected hospitals, health centres and health stations in Central, Southern and Western Ethiopia," Social Science & Medicine, Elsevier, vol. 31(2), pages 101-114, January.
  4. Pritchett, Lant H. & DEC, 1994. "Desired fertility and the impact of population policies," Policy Research Working Paper Series 1273, The World Bank.
  5. Alderman, H. & Gertler, P., 1989. "The Substitutability Of Public And Private Health Care For The Treatment Of Children In Pakistan," Papers 57, World Bank - Living Standards Measurement.
  6. Hammer, Jeffrey S., 1993. "Prices and protocols in public health care," Policy Research Working Paper Series 1131, The World Bank.
  7. Kim, A. & Benton, B., 1995. "Cost-Benefit Analysis of the Onchocerciasis Control Program (OCP)," Papers 282, World Bank - Technical Papers.
  8. Alderman, Harold & Lavy, Victor, 1996. "Household Responses to Public Health Services: Cost and Quality Tradeoffs," World Bank Research Observer, World Bank Group, vol. 11(1), pages 3-22, February.
  9. Korte, R. & Richter, Heide & Merkle, F. & Görgen, H., 1992. "Financing health services in Sub-Saharan Africa: Options for decision makers during adjustment," Social Science & Medicine, Elsevier, vol. 34(1), pages 1-9, January.
  10. Anand, S. & Hanson, K., 1995. "Disability-Adjusted Life Years: A Critical Review," Economics Series Working Papers 99174, University of Oxford, Department of Economics.
  11. Paul Gertler & John Molyneaux, 1994. "How economic development and family planning programs combined to reduce indonesian fertility," Demography, Springer, vol. 31(1), pages 33-63, February.
  12. Anand, Sudhir & Hanson, Kara, 1997. "Disability-adjusted life years: a critical review," Journal of Health Economics, Elsevier, vol. 16(6), pages 685-702, December.
  13. Germano Mwabu & Martha Ainsworth & Andrew Nyamete, 1993. "Quality of Medical Care and Choice of Medical Treatment in Kenya: An Empirical Analysis," Journal of Human Resources, University of Wisconsin Press, vol. 28(4), pages 838-862.
  14. Hammer, Jeffrey S. & Berman, Peter, 1995. "Ends and means in public health policy in developing countries," Health Policy, Elsevier, vol. 32(1-3), pages 29-45.
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