IDEAS home Printed from https://ideas.repec.org/p/oec/ecoaaa/712-en.html
   My bibliography  Save this paper

The Effectiveness of Education and Health Spending among Brazilian Municipalities

Author

Listed:
  • Luiz de Mello

    (OECD)

  • Mauro Pisu

    (OECD)

Abstract

This paper uses a large dataset combining census, household survey and budgetary data for nearly 4.000 Brazilian municipalities to estimate the impact of government spending on education and health outcomes. We deal with the multi-dimensional nature of the population’s social status by estimating structural equation models with latent variables using a limited-information two-stage least square (2SLS) estimator. Robustness of the baseline regressions to heterogeneity in the data is assessed on the basis of quantile regressions. The main empirical findings are that government spending is a powerful determinant of education outcomes, but this is not the case for health, and that spending on non-education programmes are also at least as important. In addition, there appears to be scope for gains in economies of scale in the provision of education and health care services, at least for selected segments of the conditional distribution of social outcomes. Finally, there are cross-sectoral effects in service delivery: health (education) outcomes affect the population’s education (health) status. This Working Paper relates to the 2009 OECD Economic Survey of Brazil (www.oecd.org/eco/surveys/brazil). L'efficacité des dépenses d'éducation et de santé des administrations municipales brésiliennes Ce document utilise une grande base de données combinant des informations issues des enquêtes réalisées auprès des ménages et des recensements, ainsi que les budgets de près de 4.000 municipalités brésiliennes pour estimer l’effet des dépenses des administrations publiques en matière d’éducation et de santé. Le caractère multidimensionnel des indicateurs sociaux est pris en compte par un modèle d’équation structurelle avec des variables latentes estimé par le double moindre carré à information limité. Des régressions quantiles ont été estimées pour évaluer la robustesse des résultats de base en tenant compte de l’hétérogénéité des données. Les principaux résultats sont que les dépenses des administrations publiques sont particulièrement déterminantes pour la performance de l’éducation mais pas de la santé et que les dépenses des programmes hors éducation sont aussi importantes. En outre, les résultats en matière de santé ont un impact sur les indicateurs d’éducation, et vice versa. Finalement, il apparaît que des économies d’échelle pourraient être exploitées pour la fourniture des services d’éducation et de santé au moins pour les collectivités situées sur certains segments de la distribution conditionnelle des résultats en matière d’éducation et santé. Ce Document de travail se rapporte à l’Étude économique de l’OCDE du Brésil, 2009 (www.oecd.org/eco/etudes/brésil).

Suggested Citation

  • Luiz de Mello & Mauro Pisu, 2009. "The Effectiveness of Education and Health Spending among Brazilian Municipalities," OECD Economics Department Working Papers 712, OECD Publishing.
  • Handle: RePEc:oec:ecoaaa:712-en
    as

    Download full text from publisher

    File URL: http://dx.doi.org/10.1787/222817104376
    Download Restriction: no

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Roland Craigwell & Danielle Bynoe & Shane Lowe, 2012. "The effectiveness of government expenditure on education and health care in the Caribbean," International Journal of Development Issues, Emerald Group Publishing, vol. 11(1), pages 4-18, April.

    More about this item

    Keywords

    Brazil; Brésil; education; health care; latent variable; modèle d’équation structurelle; quantile regression; régression quantile; santé; structural equation modelling; variable latente; éducation;

    JEL classification:

    • I12 - Health, Education, and Welfare - - Health - - - Health Behavior
    • I18 - Health, Education, and Welfare - - Health - - - Government Policy; Regulation; Public Health
    • I21 - Health, Education, and Welfare - - Education - - - Analysis of Education
    • I31 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - General Welfare, Well-Being

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:oec:ecoaaa:712-en. 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: (). General contact details of provider: http://edirc.repec.org/data/edoecfr.html .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.