Government Health Expenditures and Health Outcomes
This paper provides econometric evidence linking a country's per capita government health expenditures and per capita income to two health outcomes: under-five mortality and maternal mortality. Using instrumental variables techniques (GMM-H2SL), we estimate the elasticity of these outcomes with respect to government health expenditures and income while treating both variables as endogenous. Consequently, our elasticity estimates are larger in magnitude than those reported in literature, which may be biased up. The elasticity of under-five mortality with respect to government expenditures ranges from -.25 to -.42 with a mean value of -.33. For maternal mortality the elasticity ranges from -.42 to -.52 with a mean value of -.50. For developing countries, our results imply that while economic growth is certainly an important contributor to health outcomes, government spending on health is just as important a factor.
|Date of creation:||Feb 2005|
|Date of revision:||May 2006|
|Note:||Forthcoming in Health Economics.|
|Contact details of provider:|| Postal: |
Web page: http://www.coss.fsu.edu/economics/
More information through EDIRC
|Order Information:|| Email: |
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Douglas Staiger & James H. Stock, 1997.
"Instrumental Variables Regression with Weak Instruments,"
Econometric Society, vol. 65(3), pages 557-586, May.
- Douglas Staiger & James H. Stock, 1994. "Instrumental Variables Regression with Weak Instruments," NBER Technical Working Papers 0151, National Bureau of Economic Research, Inc.
- Gangagharan, L. & Valenzuela, M.R., 2000.
"Interrelationships between Income, Health and the Environment: Extending the Environmental Kuznets Curve Hypothesis,"
Department of Economics - Working Papers Series
740, The University of Melbourne.
- Gangadharan, Lata & Valenzuela, Ma. Rebecca, 2001. "Interrelationships between income, health and the environment: extending the Environmental Kuznets Curve hypothesis," Ecological Economics, Elsevier, vol. 36(3), pages 513-531, March.
- Cragg, John G, 1983. "More Efficient Estimation in the Presence of Heteroscedasticity of Unknown Form," Econometrica, Econometric Society, vol. 51(3), pages 751-63, May.
- Sudhir Anand & Martin Ravallion, 1993. "Human Development in Poor Countries: On the Role of Private Incomes and Public Services," Journal of Economic Perspectives, American Economic Association, vol. 7(1), pages 133-150, Winter.
- J. A. Hausman, 1976.
"Specification Tests in Econometrics,"
185, Massachusetts Institute of Technology (MIT), Department of Economics.
- Musgrove, P., 1996. "Public and Private Roles in Health," World Bank - Discussion Papers 339, World Bank.
When requesting a correction, please mention this item's handle: RePEc:fsu:wpaper:wp2005_02_01. 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: (Dmitry Ryvkin)
If references are entirely missing, you can add them using this form.