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Assessing the Macroeconomic and Welfare Effects of Universal Health Coverage in Palestine

Author

Listed:
  • Sameera Awawda

    (AMSE - Aix-Marseille Sciences Economiques - EHESS - École des hautes études en sciences sociales - AMU - Aix Marseille Université - ECM - École Centrale de Marseille - CNRS - Centre National de la Recherche Scientifique)

  • Mohammad Abu-Zaineh

    (AMSE - Aix-Marseille Sciences Economiques - EHESS - École des hautes études en sciences sociales - AMU - Aix Marseille Université - ECM - École Centrale de Marseille - CNRS - Centre National de la Recherche Scientifique)

Abstract

The implementation of "Universal Health Coverage" (UHC) poses serious challenges. Some of these stem from the macro-fiscal space considerations while others relate to the micro-behavioral sphere. This study seeks to assess the macro-fiscal conduciveness of UHC-oriented reforms in Palestine using a dynamic microsimulation-based Computable General Equilibrium (CGE) approach. Overall, UHC-oriented reform appears to enhance social welfare and economic growth. However, a parallel expansion in the breadth and width of coverage can have a sizeable budgetary impact, with fiscal deficit representing 14% of the GDP, of which about 2% is due to UHC. The latter would absorb about 10% of GDP, 15% of public spending and 57.4% of public spending on health. Under conditions of narrow fiscal space, an additional annual growth of 3.0% is required to progress along all the dimensions of UHC. A set of policy measures, which can help achieve UHC in a financially sustainable manner is advanced.

Suggested Citation

  • Sameera Awawda & Mohammad Abu-Zaineh, 2018. "Assessing the Macroeconomic and Welfare Effects of Universal Health Coverage in Palestine," Working Papers hal-05717812, HAL.
    • Handle: RePEc:hal:wpaper:hal-05717812
    Note: View the original document on HAL open archive server: https://hal.science/hal-05717812v1
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