Analyzing Public Expenditure Benefit Incidence in Health Care: Evidence from India

Levy Economics Institute, Working Papers Series No. 748

40 Pages Posted: 19 Jan 2013 Last revised: 5 Feb 2013

See all articles by Lekha Chakraborty

Lekha Chakraborty

Bard College - The Levy Economics Institute; National Institute of Public Finance and Policy

Yadawendra Singh

Jawaharlal Nehru University - Centre for the Study of Regional Development

Jannet Jacob

Jawaharlal Nehru University - Centre for the Study of Regional Development

Date Written: January 18, 2013

Abstract

The effectiveness of public spending remains a relatively elusive empirical issue. This preliminary analysis is an attempt, using benefit incidence methodology, to define the effectiveness of spending at the subnational government level in India’s health sector. The results reveal that the public health system is “seemingly” more equitable in a few states, while regressivity in the pattern of public health-care utilization is observed in others. Both results are to be considered with caution, as the underdeveloped market for private inpatient care in some states might be a factor in the disproportionate crowding-in of inpatients, making the public health-care system simply appear more equitable. However, patients “voting with their feet” and choosing better, private services seems evident only in the higher-income quintiles. Results also suggest that polarization is distinctly evident in the public provisioning of health-care services, though more related to inpatient, rather than ambulatory, services.

Keywords: effectiveness of public spending, benefit Incidence

JEL Classification: H51, H75, I14

Suggested Citation

Chakraborty, Lekha S. and Singh, Yadawendra and Jacob, Jannet, Analyzing Public Expenditure Benefit Incidence in Health Care: Evidence from India (January 18, 2013). Levy Economics Institute, Working Papers Series No. 748, Available at SSRN: https://ssrn.com/abstract=2202817 or http://dx.doi.org/10.2139/ssrn.2202817

Lekha S. Chakraborty (Contact Author)

Bard College - The Levy Economics Institute ( email )

New York

National Institute of Public Finance and Policy ( email )

New Delhi
India

Yadawendra Singh

Jawaharlal Nehru University - Centre for the Study of Regional Development ( email )

Vasant Vihar
Jawaharlal Nehru University
New Delhi, DE Delhi 110067
India

Jannet Jacob

Jawaharlal Nehru University - Centre for the Study of Regional Development ( email )

Vasant Vihar
New Delhi, 110067
India

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