Institutional Deficit and Health Outcomes in Post-Communist States
46 Pages Posted: 11 Nov 2014
Date Written: October 7, 2014
In this paper we explore politico-economic determinants of health. We draw upon the unique natural experiment of post-communist transitions to show the effect on health (measured as life expectancy and cause-specific mortality) of the interaction between institutions for political (democratic rules) and economic (free market entry) competitiveness. To analyze this relationship empirically, we employ panel regression analysis with country and time fixed effects. We find that, ceteris paribus, political and economic institutions exert cumulative positive impact upon health (even if their separate effects are negative or insignificant). Our findings are highly relevant to other countries that experience similar reforms.
Keywords: Health, Life expectancy, Mortality, Democratization, Liberalization, Institutions, Post-communist states
JEL Classification: I12, J10, P27, P30
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