Government Health Expenditures and Health Outcomes

23 Pages Posted: 10 Jun 2007 Last revised: 24 May 2010

See all articles by Farasat A. S. Bokhari

Farasat A. S. Bokhari

University of East Anglia (UEA) - School of Economic and Social Studies; University of East Anglia (UEA) - Centre for Competition Policy

Yunwei Gai

Florida State University

Pablo Gottret

World Bank

Date Written: May 4, 2006

Abstract

This paper provides econometric evidence linking a country's per capita government health expenditures and per capita income to two health outcomes: under-five mortality and maternal mortality. Using instrumental variables techniques (GMM-H2SL), we estimate the elasticity of these outcomes with respect to government health expenditures and income while treating both variables as endogenous. Consequently, our elasticity estimates are larger in magnitude than those reported in literature, which may be biased up. The elasticity of under-five mortality with respect to government expenditures ranges from -.25 to -.42 with a mean value of -.33. For maternal mortality the elasticity ranges from -.42 to -.52 with a mean value of -.50. For developing countries, our results imply that while economic growth is certainly an important contributor to health outcomes, government spending on health is just as important a factor.

Note: Final version of the paper was published in Health Economics 16(3),257-273, 2007.

Keywords: UnderUnder-five mortality, maternal-mortality, millennium development goals, government expenditures, elasticity

Suggested Citation

Bokhari, Farasat A. S. and Gai, Yunwei and Gottret, Pablo, Government Health Expenditures and Health Outcomes (May 4, 2006). Available at SSRN: https://ssrn.com/abstract=992481 or http://dx.doi.org/10.2139/ssrn.992481

Farasat A. S. Bokhari (Contact Author)

University of East Anglia (UEA) - School of Economic and Social Studies ( email )

Norwich, Norfolk NR4 7TJ
United Kingdom

University of East Anglia (UEA) - Centre for Competition Policy ( email )

UEA
Norwich Research Park
Norwich, Norfolk NR47TJ
United Kingdom

Yunwei Gai

Florida State University ( email )

Tallahasse, FL 32306
United States

Pablo Gottret

World Bank ( email )

1818 H Street, NW
Washington, DC 20433
United States

Here is the Coronavirus
related research on SSRN

Paper statistics

Downloads
173
Abstract Views
1,203
rank
180,025
PlumX Metrics