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Determinants of public health expenditure: some evidence from Indian states

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  • Tauhidur Rahman

Abstract

This study examines the evolution of public health expenditure in India. A panel data model is used to explain the main factors which affect public health expenditure in the period 1971 to 1991. The empirical results show that the key determinants in the explanation of the regional health expenditure are real state per capita income and literacy rate, while other structural demand variables such as the proportion of the state population over age 60, population per primary health care center and population per doctor are statistically insignificant factors. An income elasticity of 0.47 implies that health care is not a luxury good.

Suggested Citation

  • Tauhidur Rahman, 2008. "Determinants of public health expenditure: some evidence from Indian states," Applied Economics Letters, Taylor & Francis Journals, vol. 15(11), pages 853-857.
  • Handle: RePEc:taf:apeclt:v:15:y:2008:i:11:p:853-857
    DOI: 10.1080/13504850600770970
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    References listed on IDEAS

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    1. Margherita Giannoni & Theodore Hitiris, "undated". "The Regional Impact of Health Care Expenditure: the Case of Italy," Discussion Papers 99/20, Department of Economics, University of York.
    2. Bhat Ramesh & Jain Nishant, 2004. "Analysis of Public Expenditure on Health Using State Level Data," IIMA Working Papers WP2004-06-08, Indian Institute of Management Ahmedabad, Research and Publication Department.
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    Cited by:

    1. Yihua Yu & Li Zhang & Fanghua Li & Xinye Zheng, 2013. "Strategic interaction and the determinants of public health expenditures in China: a spatial panel perspective," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 50(1), pages 203-221, February.
    2. Huarng, Kun-Huang & Yu, Tiffany Hui-Kuang, 2015. "Healthcare expenditure with causal recipes," Journal of Business Research, Elsevier, vol. 68(7), pages 1570-1573.
    3. Masayoshi Hayashi, 2011. "The effects of medical factors on transfer deficits in Public Assistance in Japan: a quantile regression analysis," International Journal of Health Economics and Management, Springer, vol. 11(4), pages 287-307, December.
    4. Mohanty, Biswajit & Bhanumurthy, N. R. & Dastidar, Ananya Ghosh, 2017. "What explains Regional Imbalances in Infrastructure?: Evidence from Indian States," Working Papers 17/197, National Institute of Public Finance and Policy.
    5. repec:unt:jnapdj:v:24:y:2017:i:2:p:113-139 is not listed on IDEAS
    6. Prasant Kumar Panda & Aliva Dipali Panda, 2013. "Determinants of state level financing of health: Panel data evidence from Southern Indian states," The Empirical Econometrics and Quantitative Economics Letters, Faculty of Economics, Chiang Mai University, vol. 1(2), pages 41-52, June.
    7. repec:agr:journl:v:xxiv:y:2017:i:2(611):p:249-262 is not listed on IDEAS
    8. Nilgun Yavuz & Veli Yilanci & Zehra Ozturk, 2013. "Is health care a luxury or a necessity or both? Evidence from Turkey," The European Journal of Health Economics, Springer;Deutsche Gesellschaft für Gesundheitsökonomie (DGGÖ), vol. 14(1), pages 5-10, February.

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