Ming Kong, Jiti Gao and Xueyan Zhao
This chapter re-examines the determinants of health care expenditure (HCE), using a panel of 32 Organization for Economic Cooperation and Development (OECD) countries from 1990 to…
Abstract
This chapter re-examines the determinants of health care expenditure (HCE), using a panel of 32 Organization for Economic Cooperation and Development (OECD) countries from 1990 to 2012. In particular, a panel semiparametric technique (i.e., a partially linear model) is employed, with cross-sectional dependence allowed. Beside the study of coefficients, this chapter investigates the trending functions of HCE. After the common and individual trends of HCE are estimated via semiparametric methods, the authors calibrate them with polynomial specifications, leading to out-of-sample forecasting. The validities of the calibration are tested as well. Contrary to those studies that do not take into account time series properties, our finding suggests that medical care is not a luxury commodity. Other determinants, such as public financing, and the supply of doctors, are all positively related to HCE. Moreover, the calibrated trending models perform well in out-of-sample forecasting.
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It is often stated that profits, which in the long‐run and under perfect competition are supposed by theory to be approaching the “normal rate”, reflect by their observed…
Abstract
It is often stated that profits, which in the long‐run and under perfect competition are supposed by theory to be approaching the “normal rate”, reflect by their observed interfirm diversity different competitive conditions in the demand or the supply side of the market or both. For this reason, it is expected that profits are associated with the degree of competition.
This chapter attempts to study the long-term determinants of public and private healthcare expenditure in Hong Kong, by employing time series data over the period from 1990 to…
Abstract
This chapter attempts to study the long-term determinants of public and private healthcare expenditure in Hong Kong, by employing time series data over the period from 1990 to 2017. We find that income is not a determinant of either public or private spending per capita on healthcare services. Rather, a higher proportion of elderly will raise public expenditure on health and private spending even more. The share of children within the population will conversely decrease both public and private spending. Results also show that the rising density of doctors decreases both public and private per capita healthcare spending, showing that the supplier-induced demand problem is not an issue in Hong Kong.
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The purpose of this paper is to construct a theoretical framework for analyzing the connection between economic growth, demand for medical care, and economic health.
Abstract
Purpose
The purpose of this paper is to construct a theoretical framework for analyzing the connection between economic growth, demand for medical care, and economic health.
Design/methodology/approach
The economy is composed of two sectors, one of medical care goods and the other of consumption goods. Equilibrium is defined when capital per‐capita in period t is equal to that of period t+1.
Findings
An equilibrium path is found for the demand for consumption and for medical care goods, per‐capita level of health, capital, savings, trade balance, and net foreign assets.
Research limitations/implications
The importance of the paper is in its ability to analyze the change in public health along the growth path of the economy.
Practical implications
An example and a simulation are presented in order to confirm the theoretical results and demonstrate that the model can be used for empirical analysis.
Originality/value
The paper constructs a connection between economic growth and health sector economic developments.
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Mohammad Azhar Ud Din, Muzffar Hussain Dar and Shaukat Haseen
The study aims to compare India's public health expenditure at the international and state levels. The paper also empirically examines the regional disparities in NRHM spending…
Abstract
Purpose
The study aims to compare India's public health expenditure at the international and state levels. The paper also empirically examines the regional disparities in NRHM spending across the 21 selected states of India.
Design/methodology/approach
The tools of absolute β-and σ-convergence are used in the analysis to test the regional convergence. The average annual growth rate across the states is the dependent variable for β-convergence, and time is the second dependent variable but is used for s-convergence. In contrast, the initial value of NRHM expenditure and the coefficient of variation of NRHM expenditure are used as independent variables, respectively. Descriptive statistics are also used for the study. The data are annual and cover the panel from 2007 to 2020.
Findings
The study attests to the hypothesis of β-and σ-convergence for the selected states in the period mentioned. The observed convergence in NRHM expenditure is due to the shift in the government's attention from the non-high focus high focus states to high states through the national rural health mission policy. The coefficient of variation across the states also shows a declining trend and provides the robustness of the σ-convergence.
Originality/value
As far as the literature is concerned, none of the existing studies examines the convergence of a public health expenditure scheme like the National Rural Health Mission across the Indian states by applying the techniques of β-and σ-convergence. The novelty of the study is using the newly updated dataset and validating the convergence hypotheses in the National Rural Health Mission expenditure case.
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Josue Mbonigaba and Saidou Baba Oumar
The purpose of this paper is to assess whether the relative efficiency of South African municipalities in primary health care and hospital care is different and whether South…
Abstract
Purpose
The purpose of this paper is to assess whether the relative efficiency of South African municipalities in primary health care and hospital care is different and whether South African municipalities can learn from each other to improve on their efficiency.
Design/methodology/approach
The paper employs efficiency scores, estimated with data envelopment analysis using data from the District Health Barometer of the Health Systems Trust to rank South African municipalities across primary health care and hospital health care.
Findings
The finding is that the ranking of municipalities is not the same across both types of health care when efficiency scores and efficiency score growth are contemplated. These results imply that municipalities in South Africa are generally inefficient, but with the possibility of learning from each other’s practice in order to increase their technical efficiency.
Practical implications
The health system authority should monitor service-specific best practices among municipalities so that they can use them as practice guidelines for other municipalities.
Originality/value
Previous studies in South Africa have not dis-aggregated efficiency analysis across municipalities which are health system components of the broader national health system.
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Jun-Shan Li, Pei-Pei He and Rui-Bo He
The purpose of this paper is to provide theoretical model about supplier-induced demand (SID) in health care market in China. Then, an empirical analysis will also be carried out…
Abstract
Purpose
The purpose of this paper is to provide theoretical model about supplier-induced demand (SID) in health care market in China. Then, an empirical analysis will also be carried out according to the theoretical model above. At last, some advices will be provided in order to control or eliminate the SID in Chinese health care market.
Design/methodology/approach
SID has in fact been one of the most contentious topics in the economics of health care. According to the SID theory in health economics, the theoretical model about SID in China has been provided, then, based on the co-integration theory, the empirical analysis has been brought out.
Findings
The study tells that it is the reduction of government finance to hospital, not the increase of supply that is the long-term steady determinants of growth of health care expenditure and that the difference of marginal return to hospital among all kinds of services and medicines is the external factor.
Originality/value
To provide theoretical model about SID in health care market in China is the main originality value.
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State capacity for development is decomposed into two broad dimensions, intrinsic and extrinsic. The former concerns the state’s cohesiveness as a strategic actor, which…
Abstract
Purpose
State capacity for development is decomposed into two broad dimensions, intrinsic and extrinsic. The former concerns the state’s cohesiveness as a strategic actor, which encompasses the ability of the state to formulate and implement policy in a coherent fashion, and the latter is the state’s ability to extract and redistribute resources. Diverging from previous studies, this paper aims to consider how these intrinsic and extrinsic factors interact to increase health cross-nationally.
Design/methodology/approach
This study provides a framework for understanding how domestic and international state autonomy in policy decisions improves the effectiveness of health spending at achieving its intended outcomes. Using two-way fixed effects regression models for a sample of 89 low and middle-income nations from 1996-2012, the author tests the claim that health expenditures reduce infant and child mortality more in nations with higher levels of international and domestic autonomy rather than those with lower levels.
Findings
The author finds evidence that supports the theoretical perspective that state autonomy in international and domestic policy, through cohesion, legitimacy and local insight, improves the effectiveness of health expenditures at reducing infant and child mortality.
Research limitations/implications
The data only exist for 89 nations and from 1996 to 2012. In addition, the independent variables of interest that measure autonomy are not direct measures but instead indices.
Originality/value
The health and development of a nation’s citizenry largely depends on prioritizing expenditures in health. This research considers under what conditions nations can better prioritize health expenditures.
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Athina Economou, Agelike Nikolaou and Ioannis Theodossiou
The purpose of this paper is to investigate the effects of national unemployment rates on overall age and cause‐specific mortality rates in a panel sample of 13 European Union…
Abstract
Purpose
The purpose of this paper is to investigate the effects of national unemployment rates on overall age and cause‐specific mortality rates in a panel sample of 13 European Union countries.
Design/methodology/approach
A fixed‐effects model is used to control for unobserved time‐invariant characteristics within countries. In addition, controls such as lifestyle risk factors, urbanisation and medical intervention indicators, for potential confounders are used.
Findings
Contrary to some recent evidence this study shows that there is a strong, positive relationship between adverse economic conditions and mortality. This is in contrast to findings about the US case.
Originality/value
This paper revisits the issue of the unemployment‐mortality relationship by utilising fixed effect models with controls for various indicators that are expected to affect mortality, in contrast to previous studies.
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Most studies of intra‐industry trade (IIT) in manufacturing exclude the processed food sub‐sector (standard international trade classification (SITC) subgroups 0‐1) from their…
Abstract
Most studies of intra‐industry trade (IIT) in manufacturing exclude the processed food sub‐sector (standard international trade classification (SITC) subgroups 0‐1) from their analysis on the grounds that trade in this category is predominantly determined by the availability of natural resources in the country in question. However, this can produce misleading results, because the processed food industry is also subject to scale economies and product differentiation that determine IIT. Econometric investigations support most theoretical hypotheses, especially when the model of IIT is tested using the broad manufacturing data that include both the manufacturing commodity (SITC subgroups 5‐8) and processed food (SITC subgroups 0‐1). Results suggest that product differentiation and scale economies contribute positively to IIT, while trade protection discourages IIT.