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Effective Factors on Per Capita Healthcare Expenditure: A Comparison of Spatial Models in Selected Developing Countries

Author

Listed:
  • Rezaei, Hadi

    () (Ph.D. Candidate in Economics, Lorestan University)

  • Alizadeh , Mohammad

    () (Assistant Professor of Economics, Lorestan University)

  • Nademi, Younes

    () (Assistant Professor of Economics, University of Ayatollah ozma Boroujerdi)

Abstract

The impact of effective factors on healthcare expenditure will be appeared in the public health. Providing health services, such as health centers, is an effective factor in controlling the. Given the high potential of medical knowledge in our country, the existence of equipped health centers can lead policy makers and economic actors to health tourism industry. Therefore, examining the effective factors on health expenditures can be a new perspective for experts. Thus, this study compares the Spatial Error Model (SEM), Mixed Regression - Spatial Autoregressive Model (MR-SAR), and Spatial Durbin Model (SDM) with consideration of their geographical spatial dependency, in order to identify the most appropriate model that can explain the effective variables on per capita healthcare expenditures during 1995-2014. The results indicate that per capita income and life expectancy have positive impacts on per capita healthcare expenditures and the effects of foreign aid and population on per capita healthcare expenditures are negative. Moreover, the impact of spatial dependency on healthcare expenditures has been confirmed and the Spatial Durbin Model has been selected as the best model.

Suggested Citation

  • Rezaei, Hadi & Alizadeh , Mohammad & Nademi, Younes, 2017. "Effective Factors on Per Capita Healthcare Expenditure: A Comparison of Spatial Models in Selected Developing Countries," Quarterly Journal of Applied Theories of Economics, Faculty of Economics, Management and Business, University of Tabriz, vol. 4(2), pages 1-26, September.
  • Handle: RePEc:ris:qjatoe:0072
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    More about this item

    Keywords

    Spatial econometrics; Per capita health care expenditures; Spatial dependency; Selected developing countries;

    JEL classification:

    • C12 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Hypothesis Testing: General
    • C13 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Estimation: General
    • H51 - Public Economics - - National Government Expenditures and Related Policies - - - Government Expenditures and Health

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