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Cyclical Patterns in Government Health Expenditures Between 1995 and 2010

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  • Edit V. Velenyi
  • Marc F. Smitz

Abstract

The 2008-09 global economic crises have shown that no country is immune to external challenges. When policy controls are missing or not used efficiently, crises can reverse progress even in advanced economies. This unexpected outcome has increased concerns about the ability of governments in developing countries to manage downturns. The question is whether current and future crises will reinforce the procyclical responses or whether these governments will be able to escape the procyclical trap. In the fiscal domain, countercyclical trends in developing countries are promising. Over the last decade, about a third of the developing world has been able to escape the procyclicality trap. Yet, little is known about the evidence on the cyclical patterns of government health spending. This descriptive analysis, which covers 183 countries between 1995 and 2010, provides empirical evidence on the cyclicality of government health expenditures, using panel data from a global macro database, the fiscal health database. The objective is to propose user-friendly diagnostic approaches in this area that can be easily replicated and updated to inform technical discussions and policy making

Suggested Citation

  • Edit V. Velenyi & Marc F. Smitz, 2014. "Cyclical Patterns in Government Health Expenditures Between 1995 and 2010," Health, Nutrition and Population (HNP) Discussion Paper Series 87885, The World Bank.
  • Handle: RePEc:wbk:hnpdps:87885
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    Keywords

    allocation of resources; analytical capacity; Article; automatic stabilizer; automatic stabilizers; balance of payment; banking crises; Burns; BUSINESS CYCLE; business ... See More + cycles; capital flows; capital formation; capital investment; capital spending; Central Bank; central government; central government spending; checks; Country Risk; credit markets; creditworthiness; crisis countries; currency crises; data analysis; DATA AVAILABILITY; data quality; debt; debt crises; debt payments; demand for health; demand for health care; demand for services; developing countries; diagnostic tool; economic cycle; economic development; economic downturn; economic downturns; economic fluctuations; economic growth; ECONOMIC POLICIES; economic policy; ECONOMIC RISK; economic shocks; education spending; efficiency gains; exchange rate; exchange rates; expenditure growth; EXPENDITURES ON HEALTH; exporters; external borrowings; external debt; family planning; financial crises; Financial Crisis; financial flows; financial markets; financial protection; financial resources; financial risk; financial sustainability; financial variables; financing policies; fiscal adjustment; fiscal austerity; fiscal behavior; fiscal constraints; fiscal deficits; Fiscal Health; fiscal impact; fiscal institutions; fiscal policies; fiscal policy; fiscal rules; fiscal stabilization; Fiscal Statistics; fiscal targets; foreign direct investment; government budgets; government consumption; government expenditure; GOVERNMENT EXPENDITURES; government revenue; government revenues; government spending; gross domestic product; growth potential; growth rate; health budgets; health care; health care financing; health coverage; Health Database; health expenditure; HEALTH EXPENDITURES; health financing; health insurance; health insurance funds; health needs; Health Organization; health outcomes; health policies; Health Policy; health sector; health sector reform; health service; health services; health share; health spending; health status; health system; Health Systems; Health Systems Research; health targets; household income; human capital; Human Development; illness; income countries; income effects; income elasticity; income groups; income growth; interest payments; International Bank; intervention; Keynesian theories; liquidity; loan; loan repayment; local currency; local governments; low-income countries; macroeconomic environment; Monetary Fund; National Health; national income; nongovernmental organizations; Nutrition; pensions; personal income; policy formulation; policy responses; political economy; Political Risk; poverty reduction; price volatility; private sector; provision of health services; provision of water; public education; public expenditure; public expenditures; public health; public health spending; public investment; public investments; public sector; public spending; purchasing power; remittances; reserves; returns; Risk Groups; risk management; safety net; sanitation; sector budget; sector policies; sector policy; sectoral allocation; sectoral policies; SOCIAL EXPENDITURES; social insurance; social policies; social policy; social programs; social protection; social safety nets; social services; solvency; sovereign debt; tax; total spending; transparency; Trust Fund; unemployment; voluntary sector;

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