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Does governance matter for aggregate health capital?


  • Emiliya Lazarova
  • Ilaria Mosca


The point of departure of our analysis is the seminal work of Rodgers (1979) on the absolute and relative income hypotheses. We find that substituting the governance index for the Gini index is statistically the preferred regression model. Our findings lend support to the argument that governance matters. Further investigation provides evidence for two types of threshold effects: in terms of both absolute income and governance. For those countries below a threshold, absolute income is the most significant determinant of health, while for those above it, governance matters the most. The regression analyses are conducted on a sample of 112 states, which is representative of a wide range of absolute income and governance levels.

Suggested Citation

  • Emiliya Lazarova & Ilaria Mosca, 2007. "Does governance matter for aggregate health capital?," Applied Economics Letters, Taylor & Francis Journals, vol. 15(3), pages 199-202.
  • Handle: RePEc:taf:apeclt:v:15:y:2007:i:3:p:199-202 DOI: 10.1080/13504850600721916

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    References listed on IDEAS

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    Cited by:

    1. Jeroen Klomp & Jakob de Haan, 2008. "Effects of Governance on Health: a Cross-National Analysis of 101 Countries," Kyklos, Wiley Blackwell, vol. 61(4), pages 599-614, November.
    2. Stephen Knowles & P. Dorian Owen, 2010. "Which Institutions are Good for Your Health? The Deep Determinants of Comparative Cross-country Health Status," Journal of Development Studies, Taylor & Francis Journals, vol. 46(4), pages 701-723.
    3. Marwa Farag & A. Nandakumar & Stanley Wallack & Dominic Hodgkin & Gary Gaumer & Can Erbil, 2013. "Health expenditures, health outcomes and the role of good governance," International Journal of Health Economics and Management, Springer, vol. 13(1), pages 33-52, March.

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