IDEAS home Printed from https://ideas.repec.org/a/sgh/gosnar/y2016i3p105-125.html
   My bibliography  Save this article

Problems of Quantifying Public Goods in the Healthcare Sector

Author

Listed:
  • Bazyli Czyżewski
  • Anna Hnatyszyn-Dzikowska
  • Jan Polcyn

Abstract

A market system does not automatically lead to an optimum allocation of public goods. Market-based exchange will always lead to a deficit of a public good compared with the socially optimal level. We argue that public goods in each sector of the economy constitute an isomorphic, socioeconomic system that is not a “black box.” Thus, in order to determine the deficit of public goods, it is first necessary to investigate the available quantities versus the quality of those goods, because their performance is not only a function of public spending. There is no generally accepted methodology for doing this and there are no universal methods for quantifying public goods. The aim of this work is to develop a universal methodology for the quantification of public goods in ordinal categories, taking into account both the amount and quality of a good and budgetary valuing. In the empirical part, the authors identify various models (assets structures) of healthcare financing, using a set of OECD countries as an example. The authors also investigate to what extent these models influence the value of public goods in that sector. Composite measures have been computed for both the amount and quality of public goods. Subsequently, an agglomerative cluster analysis and a multifactorial analysis of variance are performed. Although the studied systems are diverse and reflect different social choices, the analyses show that the effectiveness of a healthcare system depends not only on the level of public financing, but also on its structure.

Suggested Citation

  • Bazyli Czyżewski & Anna Hnatyszyn-Dzikowska & Jan Polcyn, 2016. "Problems of Quantifying Public Goods in the Healthcare Sector," Gospodarka Narodowa, Warsaw School of Economics, issue 3, pages 105-125.
  • Handle: RePEc:sgh:gosnar:y:2016:i:3:p:105-125
    as

    Download full text from publisher

    File URL: http://gospodarkanarodowa.sgh.waw.pl/p/gospodarka_narodowa_2016_03_05.pdf
    File Function: Full text
    Download Restriction: no

    References listed on IDEAS

    as
    1. Tanzi,Vito & Schuknecht,Ludger, 2000. "Public Spending in the 20th Century," Cambridge Books, Cambridge University Press, number 9780521662918, April.
    2. Böhm, Katharina & Schmid, Achim & Götze, Ralf & Landwehr, Claudia & Rothgang, Heinz, 2012. "Classifying OECD healthcare systems: A deductive approach," TranState Working Papers 165, University of Bremen, Collaborative Research Center 597: Transformations of the State.
    3. Rafael Di Tella & Robert MacCulloch, 2005. "Partisan Social Happiness," Review of Economic Studies, Oxford University Press, vol. 72(2), pages 367-393.
    4. Daniel Kahneman & Peter P. Wakker & Rakesh Sarin, 1997. "Back to Bentham? Explorations of Experienced Utility," The Quarterly Journal of Economics, Oxford University Press, vol. 112(2), pages 375-406.
    5. Simon Luechinger, 2009. "Valuing Air Quality Using the Life Satisfaction Approach," Economic Journal, Royal Economic Society, vol. 119(536), pages 482-515, March.
    6. Tanzi, Vito & Schuknecht, Ludger, 1997. "Reconsidering the Fiscal Role of Government: The International Perspective," American Economic Review, American Economic Association, vol. 87(2), pages 164-168, May.
    7. Robert J. MacCulloch & Rafael Di Tella & Andrew J. Oswald, 2001. "Preferences over Inflation and Unemployment: Evidence from Surveys of Happiness," American Economic Review, American Economic Association, vol. 91(1), pages 335-341, March.
    8. Hsiao, William C., 1995. "Abnormal economics in the health sector," Health Policy, Elsevier, vol. 32(1-3), pages 125-139.
    9. Alesina, Alberto & Di Tella, Rafael & MacCulloch, Robert, 2004. "Inequality and happiness: are Europeans and Americans different?," Journal of Public Economics, Elsevier, vol. 88(9-10), pages 2009-2042, August.
    10. Carson, Richard & Flores, Nicholas E. & Hanemann, W. Michael, 1998. "Sequencing and Valuing Public Goods," Journal of Environmental Economics and Management, Elsevier, vol. 36(3), pages 314-323, November.
    11. Levinson, Arik, 2012. "Valuing public goods using happiness data: The case of air quality," Journal of Public Economics, Elsevier, vol. 96(9-10), pages 869-880.
    12. Bernard M. S. van Praag & Barbara E. Baarsma, 2005. "Using Happiness Surveys to Value Intangibles: The Case of Airport Noise," Economic Journal, Royal Economic Society, vol. 115(500), pages 224-246, January.
    13. António Afonso & Ludger Schuknecht & Vito Tanzi, 2005. "Public sector efficiency: An international comparison," Public Choice, Springer, vol. 123(3), pages 321-347, June.
    14. Daniel Kahneman & Richard H. Thaler, 2006. "Anomalies: Utility Maximization and Experienced Utility," Journal of Economic Perspectives, American Economic Association, vol. 20(1), pages 221-234, Winter.
    Full references (including those not matched with items on IDEAS)

    More about this item

    Keywords

    public goods; health policy; healthcare system; public sector efficiency;

    JEL classification:

    • H41 - Public Economics - - Publicly Provided Goods - - - Public Goods
    • H87 - Public Economics - - Miscellaneous Issues - - - International Fiscal Issues; International Public Goods
    • P00 - Economic Systems - - General - - - General

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:sgh:gosnar:y:2016:i:3:p:105-125. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Dariusz Nojszewski). General contact details of provider: http://edirc.repec.org/data/sgwawpl.html .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.