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Estimation of a Health Production Function: Evidence from East-European Countries

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  • Bichaka Fayissa
  • Anca Traian

Abstract

The purpose of this study is to estimate a health production function for the 13 East European countries including Belarus, Bulgaria, Croatia, Czech Republic, Estonia, Hungary, Latvia, Lithuania, Poland, Romania, Slovakia, Slovenia and Ukraine. Using panel data from 1997 to 2005 on a diverse array of economic, demographic, environmental, and lifestyles factors as inputs, we analyze a health production function at the macro level in order to determine the most efficient way of allocating limited resources for improving the overall health status of countries in the sample. To control for individual country heterogeneity, we employ panel analytic methods of fixed effects, random effects, and Arellano – Bond estimator. The results indicate that economic growth as measured by GDP per capita growth, investment in human capital formation, and residence in urban areas significantly reduce infant mortality and thus improve the health status of countries in the sample. These findings are useful, not only for serving as background for health care policy decisions, but also for a better understanding of the factors that affect the health condition of the region.

Suggested Citation

  • Bichaka Fayissa & Anca Traian, 2011. "Estimation of a Health Production Function: Evidence from East-European Countries," Working Papers 201104, Middle Tennessee State University, Department of Economics and Finance.
    • Handle: RePEc:mts:wpaper:201104
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    Cited by:

    1. Ana Poças & Elias Soukiazis & Micaela Antunes, 2020. "Factors Explaining Life Expectancy at Age 65: A Panel Data Approach Applied to European Union Countries," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 150(1), pages 265-288, July.

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    More about this item

    Keywords

    Health Status; Eastern European Countries; Fixed-Effects; Random-Effects; Arellano-Bond estimator;
    All these keywords.

    JEL classification:

    • I12 - Health, Education, and Welfare - - Health - - - Health Behavior
    • I20 - Health, Education, and Welfare - - Education - - - General

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