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Inequality Effects of Fiscal Policy: Analysing the Benefit Incidence on Health Sector in India

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  • Bhadra, Kaushik K.

    (National Institute of Public Finance and Policy)

Abstract

Analysing inequality effect of fiscal policy is an elusive area of research in public economics. Using the unit record data of two recent NSS rounds on health, this paper analyses the benefit incidence of public health spending on inpatient service delivery, categorised by region, gender and economic class. Inpatient morbidity data among quintile-wise MPCE classes across three Indian states - Bihar, West Bengal and Kerala - are examined to decipher whether the benefit incidence of public health expenditure is pro-poor. The concentration curves and computed unit costs followed by polarisation ratios and odds-ratios reveal significant regional and gender differentials in access and utilisation of health services at sub national levels. West Bengal has remained unchanged in both the rounds in case of both the differentials - gender and region while Bihar has shown a significant improvement in bringing down regional differential. Kerala, however, explicate a different scenario where poor `voted with feet' from public sector. The co-existence of private and public service provisioning in health sector may be one of the reasons for this behavioural `exit' in Kerala, however, it is equally interesting to note the `voice' elements when the targeting of public spending is pro-rich.

Suggested Citation

  • Bhadra, Kaushik K., 2015. "Inequality Effects of Fiscal Policy: Analysing the Benefit Incidence on Health Sector in India," Working Papers 15/158, National Institute of Public Finance and Policy.
    • Handle: RePEc:npf:wpaper:15/158
    Note: Working Paper 158, 2015
    as

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    References listed on IDEAS

    as
    1. Rosario G. Manasan & Janet S. Cuenca & Eden C. Villanueva, 2007. "Benefit Incidence of Public Spending on Education in the Philippines," Governance Working Papers 21930, East Asian Bureau of Economic Research.
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    6. Filmer, Deon & Hammer, Jeffrey & Pritchett, Lant, 1998. "Health policy in poor countries : weak links in the chain," Policy Research Working Paper Series 1874, The World Bank.
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    Cited by:

    1. Bhattacharya, Rudrani & Pandey, Radhika & Patnaik, Ila & Shah, Ajay, 2016. "Seasonal adjustment of Indian macroeconomic time-series," Working Papers 16/160, National Institute of Public Finance and Policy.

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    More about this item

    Keywords

    Benefit Incidence Analysis ; Concentration Curve ; Public Health Expenditure;
    All these keywords.

    JEL classification:

    • H51 - Public Economics - - National Government Expenditures and Related Policies - - - Government Expenditures and Health
    • H77 - Public Economics - - State and Local Government; Intergovernmental Relations - - - Intergovernmental Relations; Federalism
    • I14 - Health, Education, and Welfare - - Health - - - Health and Inequality

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