The Effect of Business Cycles on Health Expenditure: A Story of Income Inequality in China

Pu, Xiaohong; Zeng, Ming; Luo, Yuan

doi:10.3389/fpubh.2021.653480

Cited by 11 publications

(17 citation statements)

References 60 publications

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“…However, the growth rate of per capita expenditure on health fluctuates from 8.82% in 2000 to 10.99% in 2019, and it reaches a peak of 24.94% during the global financial crisis in 2008. These results indicate that health expenditure changes with economic growth and policies ( 1 , 2 ).…”

Section: Introductionmentioning

confidence: 85%

“…Healthcare expenditure is used to measure the final consumption of healthcare goods and services, including personal healthcare (i.e., therapeutic care, rehabilitation care, long-term care, ancillary services, and medical goods) and collective services (i.e., prevention and public health services). In this study, following the studies of Pu et al ( 2 ) and Zeng et al ( 27 ), we use the inpatient expenditure ( in_exp ) as the proxy variable of healthcare expenditure, which refers to the logarithm of the per capita expenditure in hospitalization. Also, we use outpatient expenditure ( out_exp ) for the robustness test, which is expressed as the logarithm of the per capita expenditure in outpatient ( 27 ).…”

Section: Data Variables and Methodsmentioning

confidence: 99%

“…Hence, we adopt the global and the local Moran index in ESDA to test the spatial correlation. The calculation formulas are as follows: where, 2 ; I global and I local represent the global Moran index and local Moran index, respectively;…”

Section: Spatial Autocorrelation Testmentioning

confidence: 99%

“…In recent years, a large and growing body of literature has investigated the determinants of healthcare expenditure, such as business cycles (2), economic overheating (3), economic activity (4), economic crisis (1,5), and other factors (6)(7)(8)(9)(10). The most studied determinant is economic growth, which is an important demand-side driver of healthcare expenditure (2,11,12). Some studies show that healthcare expenditure is significantly positive with GDP because the demand for healthcare services will rise with the increase of income (4,11,13).…”

Section: Introductionmentioning

confidence: 99%

“…Estimation results of robustness tests.This table presents the robustness test results; Columns(1)(2)(3) are the results of the alternative measure of healthcare expenditure (Out_exp) based on the three spatial weight matrices, respectively; Columns(4)(5)(6) are the results of the alternative measure of EPU (EPU2) based on the three spatial weight matrices; Column(7) is the result of the endogenous test using the GMM method; The results of control variables are consistent with those in Table5, and we do not report them in this table due to space limitations; ***p < 1%, **p < 5%, and *p < 10%, respectively; t-statistics value in brackets.area (the coefficient is −0.0571, and the corresponding tvalue is −1.22). The above results indicate that EPU has significant positive effects on healthcare expenditure in the eastern and central areas, while the effects are not significant in the western area.…”

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confidence: 99%

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Does Economic Policy Uncertainty Matter for Healthcare Expenditure in China? A Spatial Econometric Analysis

Bai

Tang

Zhang

et al. 2021

Front. Public Health

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A growing body of research has documented the determinants of healthcare expenditure, but no known empirical research has focused on investigating the spatial effects between economic policy uncertainty (EPU) and healthcare expenditure. This study aims to explore the spatial effects of EPU on healthcare expenditure using the panel data of 29 regions in China from 2007 to 2017. Our findings show that healthcare expenditure in China has the characteristics of spatial clustering and spatial spillover effects. Our study also shows that EPU has positive spatial spillover effects on healthcare expenditure in China; that is, EPU affects not only local healthcare expenditure but also that in other geographically close or economically connected regions. Our study further indicates that the spatial spillover effects of EPU on healthcare expenditure only exist in the eastern area. The findings of this research provide some key implications for policymakers in emerging markets.

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Section: Introductionmentioning

confidence: 85%

Section: Data Variables and Methodsmentioning

confidence: 99%

Section: Spatial Autocorrelation Testmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

mentioning

confidence: 99%

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Does Economic Policy Uncertainty Matter for Healthcare Expenditure in China? A Spatial Econometric Analysis

Bai

Tang

Zhang

et al. 2021

Front. Public Health

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Effect of economic uncertainty on public health expenditure in Economic Community of West African States: Implications for sustainable healthcare financing

Iheoma¹

2022

Health Science Reports

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This study investigates the dynamic effect of economic uncertainty on public health expenditure in the Economic Community of West African States region.The investigation is motivated by the recent volatilities in the global economy in the face of increasing demand for adequate funding of health systems in the region, and the need to fill the existing gap in the literature. The study employs the panel autoregressive distributed lag model to express the theoretical relationship between public health expenditure per capita, economic uncertainty and population growth rate, and estimates the model parameters using the mean group and the pooled mean group estimators, after accounting for stationarity and cointegration. Results reveal that on the aggregate, economic uncertainty and population growth are significant determinants of per capita health spending in the long run. When the countries are disaggregated by income groups, evidence suggests that in low-income countries, economic uncertainty is negatively associated with health spending in the short run, while a growing population reduces health spending per capita in the long run. In lower-middleincome countries, economic uncertainty increases health spending in the short run, but reduces it in the long run as uncertainty persists, while population growth negatively impacts health spending in the long run. We conclude that the dependence on public funding of the health system in the region appears unsustainable. Thus, health financing policies need to explore alternative funding mechanisms that entrench cost-sharing between the public and private financiers.

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Effects of transport–carbon intensity, transportation, and economic complexity on environmental and health expenditures

Hussain,

Marcel,

Majeed

et al. 2023

Environ Dev Sustain

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Health and the environment are complex components of the countries, influenced by several factors, especially transport, and economics. Thus, this paper assesses the role of transportation and economic complexity in the environment and public health for the Organization for Economic Co-operation Development (OECD) countries from 2001 to 2020. This study also focuses on the relationship between transport and economic complexity with environmental and healthcare expenditures. Precisely, transport and economic activities stimulate healthcare expenditures through multiple channels. The current study employs the STIRPAT model to investigate the association with transportation, economic complexity, transport–carbon intensity, and healthcare expenditure. Besides, the current research confirms the plausible cross-sectional dependency across countries, and it adopts a second-generation technique. Analytical findings suggest that transportation-carbon intensity is positively and significantly associated with healthcare expenditures. Healthcare and transport–household expenditures increase transport–carbon intensity (TCI) by 75% and 45%, respectively, in the long run. In the contrast, TCI and transport–household expenditures have also a remarkable impact on healthcare expenditures and are estimated approximately 95% in the long run. Moreover, economic growth also upsurges TCI and healthcare expenditures through multiple economic activities. Besides, transport–household expenditures (THE) drastically impact transport–carbon intensity and healthcare expenditures (HEX) through passenger traffic (PTF). Diagnostic upshots unveil that the joint effect of THE and PTF increases TCI and HEX by 4 and 3%, respectively. Finally, findings recommend some policy implications and future research directions for the countries based on empirical outcomes. Countries should regulate economic activities to reduce transport carbon emissions.

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The Effect of Business Cycles on Health Expenditure: A Story of Income Inequality in China

Cited by 11 publications

References 60 publications

Does Economic Policy Uncertainty Matter for Healthcare Expenditure in China? A Spatial Econometric Analysis

Does Economic Policy Uncertainty Matter for Healthcare Expenditure in China? A Spatial Econometric Analysis

Effect of economic uncertainty on public health expenditure in Economic Community of West African States: Implications for sustainable healthcare financing

Effects of transport–carbon intensity, transportation, and economic complexity on environmental and health expenditures

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