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Welfare State and Life Satisfaction: Evidence from Public Health Care

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  • Kaisa Kotakorpi
  • Jani-Petri Laamanen

    (School of Management, University of Tampere)

Abstract

We examine the link between the welfare state and citizens’life satisfaction by using evidence from public health care services. By combining local level data on public health care, and individual level data on life satisfaction, we show that relatively high expenditures in health care have a positive exect on individuals’ life satisfaction in our data. We find some evidence for an "ends-against-the-middle" equilibrium (Epple and Romano, 1996) in the provision of public health care, where middle-income individuals prefer higher public expenditure than low-income or high-income individuals. Further, our results indicate that valuation for health care depends on individual political orientation

Suggested Citation

  • Kaisa Kotakorpi & Jani-Petri Laamanen, 2007. "Welfare State and Life Satisfaction: Evidence from Public Health Care," Working Papers 0761, University of Tampere, School of Management, Economics.
  • Handle: RePEc:tam:wpaper:0761
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    File URL: http://urn.fi/urn:isbn:978-951-44-7131-5
    File Function: First version, 2007
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    Cited by:

    1. Anita Ratcliffe, 2012. "Wealth Effects or Economic Barometer: Why Do House Prices Matter for Psychological Health?," Working Papers 2012014, The University of Sheffield, Department of Economics.
    2. Andrés Rodríguez-Pose & Kristina Maslauskaite, 2011. "Can policy make us happier? Individual characteristics, socio-economic factors and life satisfaction in Central and Eastern Europe," Cambridge Journal of Regions, Economy and Society, Cambridge Political Economy Society, vol. 5(1), pages 77-96.
    3. Luis Diaz-Serrano & Andrés Rodríguez-Pose, 2015. "Decentralization and the Welfare State: What Do Citizens Perceive?," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 120(2), pages 411-435, January.
    4. Zohal Hessami, 2010. "The Size and Composition of Government Spending in Europe and Its Impact on Well-Being," Kyklos, Wiley Blackwell, vol. 63(3), pages 346-382, August.
    5. Yamamura, Eiji, 2011. "Effect of social capital on income distribution preferences: comparison of neighborhood externality between high- and low-income households," MPRA Paper 32557, University Library of Munich, Germany.
    6. Sarah Brown & Alexandros Kontonikas & Alberto Montagnoli & Mirko Moro & Luisanna Onnis, 2018. "Austerity, Life Satisfaction and Expectations," Working Papers 2018001, The University of Sheffield, Department of Economics.
    7. Anita Ratcliffe, 2010. "Housing wealth or economic climate: Why do house prices matter for well-being?," The Centre for Market and Public Organisation 10/234, Department of Economics, University of Bristol, UK.
    8. Seoyong Kim & Donggeun Kim, 2012. "Does Government Make People Happy?: Exploring New Research Directions for Government’s Roles in Happiness," Journal of Happiness Studies, Springer, vol. 13(5), pages 875-899, October.
    9. Rainald Borck, 2018. "Political Participation and the Welfare State," CESifo Working Paper Series 7128, CESifo Group Munich.
    10. Jantsch, Antje & Wunder, Christoph & Hirschauer, Norbert, 2016. "Lebensqualität In Deutschland – Ein Vergleich Von Ländlichen Und Städtischen Regionen," 56th Annual Conference, Bonn, Germany, September 28-30, 2016 244798, German Association of Agricultural Economists (GEWISOLA).
    11. Blanchflower, David G; Oswald, Andrew, 2011. "International Happiness," CAGE Online Working Paper Series 39, Competitive Advantage in the Global Economy (CAGE).
    12. Andrada DUMBRAVEANU, 2014. "The more, the better: life satisfaction in the bitter welfare state," The Journal of Accounting and Management, Danubius University of Galati, issue 3, pages 7-13, December.
    13. Eiji Yamamura, 2012. "The Effects of Information Asymmetry and Government Size on Happiness: A Case Study from Japan," The IUP Journal of Governance and Public Policy, IUP Publications, vol. 0(1), pages 7-20, March.
    14. repec:spr:jhappi:v:18:y:2017:i:6:d:10.1007_s10902-016-9797-y is not listed on IDEAS
    15. Buckley, Neil & Cuff, Katherine & Hurley, Jeremiah & Mestelman, Stuart & Thomas, Stephanie & Cameron, David, 2015. "Support for public provision of a private good with top-up and opt-out: A controlled laboratory experiment," Journal of Economic Behavior & Organization, Elsevier, vol. 111(C), pages 177-196.

    More about this item

    Keywords

    life satisfaction; public provision; health care;

    JEL classification:

    • H44 - Public Economics - - Publicly Provided Goods - - - Publicly Provided Goods: Mixed Markets
    • H51 - Public Economics - - National Government Expenditures and Related Policies - - - Government Expenditures and Health
    • I31 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - General Welfare, Well-Being

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