IDEAS home Printed from https://ideas.repec.org/p/ris/smuesw/2017_013.html
   My bibliography  Save this paper

Sources of health financing and health outcomes: A panel data analysis

Author

Listed:
  • Fujii, Tomoki

    (School of Economics, Singapore Management University)

Abstract

We study the differential impacts of public and private sources of health spending on health outcomes using a triple difference approach. We find that private health spending has on average a higher health-promoting effect than public health spending. This result is robust with respect to the choice of outcome measure and covariates in the regression and driven primarily by the countries with ineffective governments. Once we restrict our sample to countries with effective governments, private health spending is no better than public health spending for improving the health outcome.

Suggested Citation

  • Fujii, Tomoki, 2017. "Sources of health financing and health outcomes: A panel data analysis," Economics and Statistics Working Papers 13-2017, Singapore Management University, School of Economics.
  • Handle: RePEc:ris:smuesw:2017_013
    as

    Download full text from publisher

    File URL: http://ink.library.smu.edu.sg/soe_research/2094/
    File Function: Full text
    Download Restriction: no
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Nazmul Chaudhury & Jeffrey Hammer & Michael Kremer & Karthik Muralidharan & F. Halsey Rogers, 2006. "Missing in Action: Teacher and Health Worker Absence in Developing Countries," Journal of Economic Perspectives, American Economic Association, vol. 20(1), pages 91-116, Winter.
    2. Sharmistha Self & Richard Grabowski, 2003. "How effective is public health expenditure in improving overall health? A cross-country analysis," Applied Economics, Taylor & Francis Journals, vol. 35(7), pages 835-845.
    3. Martin, Stephen & Rice, Nigel & Smith, Peter C., 2008. "Does health care spending improve health outcomes? Evidence from English programme budgeting data," Journal of Health Economics, Elsevier, vol. 27(4), pages 826-842, July.
    4. Bruce Hollingsworth, 2008. "The measurement of efficiency and productivity of health care delivery," Health Economics, John Wiley & Sons, Ltd., vol. 17(10), pages 1107-1128, October.
    5. Hugh R. Waters & Laurel E. Hatt & Robert E. Black, 2008. "The role of private providers in treating child diarrhoea in Latin America," Health Economics, John Wiley & Sons, Ltd., vol. 17(1), pages 21-29, January.
    6. Chang, Hsihui & Cheng, Mei-Ai & Das, Somnath, 2004. "Hospital ownership and operating efficiency: Evidence from Taiwan," European Journal of Operational Research, Elsevier, vol. 159(2), pages 513-527, December.
    7. Ulf‐G. Gerdtham, 1992. "Pooling international health care expenditure data," Health Economics, John Wiley & Sons, Ltd., vol. 1(4), pages 217-231, December.
    8. Bruce Hollingsworth & P.J. Dawson & N. Maniadakis, 1999. "Efficiency measurement of health care: a review of non‐parametric methods and applications," Health Care Management Science, Springer, vol. 2(3), pages 161-172, July.
    9. Tiemann, Oliver & Schreyögg, Jonas & Busse, Reinhard, 2012. "Hospital ownership and efficiency: A review of studies with particular focus on Germany," Health Policy, Elsevier, vol. 104(2), pages 163-171.
    10. Richard Auster & Irving Leveson & Deborah Sarachek, 1969. "The Production of Health, an Exploratory Study," Journal of Human Resources, University of Wisconsin Press, vol. 4(4), pages 411-436.
    11. Pierre‐Yves Crémieux & Pierre Ouellette & Caroline Pilon, 1999. "Health care spending as determinants of health outcomes," Health Economics, John Wiley & Sons, Ltd., vol. 8(7), pages 627-639, November.
    12. Vick, Sandra & Scott, Anthony, 1998. "Agency in health care. Examining patients' preferences for attributes of the doctor-patient relationship," Journal of Health Economics, Elsevier, vol. 17(5), pages 587-605, October.
    13. Hitiris, Theo & Posnett, John, 1992. "The determinants and effects of health expenditure in developed countries," Journal of Health Economics, Elsevier, vol. 11(2), pages 173-181, August.
    14. Mihajlo Jakovljevic & Elena Potapchik & Larisa Popovich & Debasis Barik & Thomas E. Getzen, 2017. "Evolving Health Expenditure Landscape of the BRICS Nations and Projections to 2025," Health Economics, John Wiley & Sons, Ltd., vol. 26(7), pages 844-852, July.
    15. Newhouse, Joseph P., 1987. "Cross national differences in health spending what do they mean?," Journal of Health Economics, Elsevier, vol. 6(2), pages 159-162, June.
    16. Lucia Hanmer & Robert Lensink & Howard White, 2003. "Infant and child mortality in developing countries: Analysing the data for Robust determinants," Journal of Development Studies, Taylor & Francis Journals, vol. 40(1), pages 101-118.
    17. John Nixon & Philippe Ulmann, 2006. "The relationship between health care expenditure and health outcomes," The European Journal of Health Economics, Springer;Deutsche Gesellschaft für Gesundheitsökonomie (DGGÖ), vol. 7(1), pages 7-18, March.
    18. Mihajlo Jakovljevic, 2013. "Resource allocation strategies in Southeastern European health policy," The European Journal of Health Economics, Springer;Deutsche Gesellschaft für Gesundheitsökonomie (DGGÖ), vol. 14(2), pages 153-159, April.
    19. Lant Pritchett & Lawrence H. Summers, 1996. "Wealthier is Healthier," Journal of Human Resources, University of Wisconsin Press, vol. 31(4), pages 841-868.
    20. Wolfe, Barbara L., 1986. "Health status and medical expenditures: Is there a link?," Social Science & Medicine, Elsevier, vol. 22(10), pages 993-999, January.
    21. 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.
    22. Randall P. Ellis & Thomas G. McGuire, 1993. "Supply-Side and Demand-Side Cost Sharing in Health Care," Journal of Economic Perspectives, American Economic Association, vol. 7(4), pages 135-151, Fall.
    23. Kaufmann, Daniel & Kraay, Aart & Mastruzzi, Massimo, 2010. "The worldwide governance indicators : methodology and analytical issues," Policy Research Working Paper Series 5430, The World Bank.
    24. Kim, Kwangkee & Moody, Philip M., 1992. "More resources better health? A cross-national perspective," Social Science & Medicine, Elsevier, vol. 34(8), pages 837-842, April.
    25. Dabalen, Andrew & Wane, Waly, 2008. "Informal payments and moonlighting in Tajikistan's health sector," Policy Research Working Paper Series 4555, The World Bank.
    26. Di Matteo, Livio & Di Matteo, Rosanna, 1998. "Evidence on the determinants of Canadian provincial government health expenditures: 1965-1991," Journal of Health Economics, Elsevier, vol. 17(2), pages 211-228, April.
    27. Kennelly, Brendan & O'Shea, Eamon & Garvey, Eoghan, 2003. "Social capital, life expectancy and mortality: a cross-national examination," Social Science & Medicine, Elsevier, vol. 56(12), pages 2367-2377, June.
    28. Musgrove, P., 1996. "Public and Private Roles in Health," World Bank - Discussion Papers 339, World Bank.
    Full references (including those not matched with items on IDEAS)

    Citations

    Blog mentions

    As found by EconAcademics.org, the blog aggregator for Economics research:
    1. Chris Sampson’s journal round-up for 27th August 2018
      by Chris Sampson in The Academic Health Economists' Blog on 2018-08-27 11:00:25

    RePEc Biblio mentions

    As found on the RePEc Biblio, the curated bibliography for Economics:
    1. > Economics of Welfare > Health Economics

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Mohanty, Ranjan Kumar & Behera, Deepak Kumar, 2020. "How Effective is Public Health Care Expenditure in Improving Health Outcome? An Empirical Evidence from the Indian States," Working Papers 20/300, National Institute of Public Finance and Policy.
    2. AfDB AfDB, 2007. "Working Paper 91 - Health Expenditures and Health Outcomes in Africa," Working Paper Series 2224, African Development Bank.
    3. Erika Laranjeira & Helena Szrek, 2016. "Going beyond life expectancy in assessments of health systems’ performance: life expectancy adjusted by perceived health status," International Journal of Health Economics and Management, Springer, vol. 16(2), pages 133-161, June.
    4. AfDB AfDB, 2007. "Working Paper 91 - Health Expenditures and Health Outcomes in Africa," Working Paper Series 2304, African Development Bank.
    5. Ruolz Ariste & Livio Di Matteo, 2017. "Value for money: an evaluation of health spending in Canada," International Journal of Health Economics and Management, Springer, vol. 17(3), pages 289-310, September.
    6. Deepak Kumar Behera & Umakant Dash, 2020. "Is health expenditure effective for achieving healthcare goals? Empirical evidence from South-East Asia Region," Asia-Pacific Journal of Regional Science, Springer, vol. 4(2), pages 593-618, June.
    7. Marwa Farag & A. Nandakumar & Stanley Wallack & Dominic Hodgkin & Gary Gaumer & Can Erbil, 2013. "Health expenditures, health outcomes and the role of good governance," International Journal of Health Economics and Management, Springer, vol. 13(1), pages 33-52, March.
    8. Akinlo, Anthony E. & Sulola, Abiola O., 2019. "Health care expenditure and infant mortality in sub-Saharan Africa," Journal of Policy Modeling, Elsevier, vol. 41(1), pages 168-178.
    9. Richard Heijink & Xander Koolman & Gert Westert, 2013. "Spending more money, saving more lives? The relationship between avoidable mortality and healthcare spending in 14 countries," The European Journal of Health Economics, Springer;Deutsche Gesellschaft für Gesundheitsökonomie (DGGÖ), vol. 14(3), pages 527-538, June.
    10. Livio Di Matteo & Thomas Barbiero, 2020. "Spend Less, Get More? Explaining Health Spending and Outcome Differences Between Canada and Italy," Review of Economic Analysis, Digital Initiatives at the University of Waterloo Library, vol. 12(4), pages 403-438, December.
    11. Ekaterini Panopoulou & Theologos Pantelidis, 2012. "Convergence in per capita health expenditures and health outcomes in the OECD countries," Applied Economics, Taylor & Francis Journals, vol. 44(30), pages 3909-3920, October.
    12. Mark Berger & Jodi Messer, 2002. "Public financing of health expenditures, insurance, and health outcomes," Applied Economics, Taylor & Francis Journals, vol. 34(17), pages 2105-2113.
    13. Hartwig, Jochen, 2008. "What drives health care expenditure?--Baumol's model of 'unbalanced growth' revisited," Journal of Health Economics, Elsevier, vol. 27(3), pages 603-623, May.
    14. Muhammad Shahbaz & Nanthakumar Loganathan & Nooreen Mujahid & Amjad Ali & Ahmed Nawaz, 2016. "Determinants of Life Expectancy and its Prospects Under the Role of Economic Misery: A Case of Pakistan," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 126(3), pages 1299-1316, April.
    15. Asiskovitch, Sharon, 2010. "Gender and health outcomes: The impact of healthcare systems and their financing on life expectancies of women and men," Social Science & Medicine, Elsevier, vol. 70(6), pages 886-895, March.
    16. Gallet, Craig A. & Doucouliagos, Hristos, 2017. "The impact of healthcare spending on health outcomes: A meta-regression analysis," Social Science & Medicine, Elsevier, vol. 179(C), pages 9-17.
    17. Oliver Fritz & Peter Mayerhofer & Reinhard Haller & Gerhard Streicher & Florian Bachner & Herwig Ostermann, 2013. "Die regionalwirtschaftlichen Effekte der österreichischen Krankenanstalten," WIFO Studies, WIFO, number 46672, June.
    18. Emanuele Arcà & Francesco Principe & Eddy Van Doorslaer, 2020. "Death by austerity? The impact of cost containment on avoidable mortality in Italy," Health Economics, John Wiley & Sons, Ltd., vol. 29(12), pages 1500-1516, December.
    19. Kao, Chiang & Pang, Rui-Zhi & Liu, Shiang-Tai & Bai, Xue-Jie, 2021. "Most productive types of hospitals: An empirical analysis," Omega, Elsevier, vol. 99(C).
    20. Pedro Antonio Martín Cervantes & Nuria Rueda López & Salvador Cruz Rambaud, 2020. "Life Expectancy at Birth in Europe: An Econometric Approach Based on Random Forests Methodology," Sustainability, MDPI, Open Access Journal, vol. 12(1), pages 1-17, January.

    More about this item

    Keywords

    Child mortality rate; Life expectancy at birth; Health spending; Government effectiveness; Triple difference;
    All these keywords.

    JEL classification:

    • I10 - Health, Education, and Welfare - - Health - - - General
    • I15 - Health, Education, and Welfare - - Health - - - Health and Economic Development
    • I18 - Health, Education, and Welfare - - Health - - - Government Policy; Regulation; Public Health

    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:ris:smuesw:2017_013. 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: https://edirc.repec.org/data/sesmusg.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.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with 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.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Cheong Pei Qi The email address of this maintainer does not seem to be valid anymore. Please ask Cheong Pei Qi to update the entry or send us the correct address (email available below). General contact details of provider: https://edirc.repec.org/data/sesmusg.html .

    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.