What are the reasons that per capita health care expenditure and publically financing health expenditure negavitly affectin total health expenditure?
My estimated results from DOLS method for the SAARC countries showed that per capita health care expenditure and health expenditure publically finance impacted total health expenditure.
Can any body elaborates the economic reasons
It seems unclear why would you be interested in this results. Total health expenditures per capita are definitely equal to health care expenditures divided by population, so you have basically the same variable on the left and right side of the equation. Furthermore, public financing and per capita variables are correlated. So, I would suggest that the model is misspecified, which is the reason you have strange results.
Thank you dear Botric for your answer, so would you suggest that I may drop per capita health care expenditure from the model and re-estimate then.
Habib
I would suggest that you look at the WHO Report on the determinants of health expenditure (Attached), which includes details of health expenditure models. Health expenditure can be categorized as out-of-pocket payments and prepayments. Out-of-pocket payments refer to the payments made by the patients at the point of receiving services. Prepayments are contributions made through general taxation, payroll tax, compulsory insurance and voluntary insurance. The fundamental distinctions between out-of-pocket payments and prepayments is that prepayments are pooled across the population. Read more in this report.
Hi Dear Sandra!
Thank you for your reply. I have already gone through this report. I put the question just to get the feedback from experienced researchers on the results what I obtained in analysis. why the results are different and what are the justifications.
Thanks and regards,
Habib
https://www.google.com/url?sa=t&rct=j&q=&esrc=s&source=web&cd=&cad=rja&uact=8&ved=2ahUKEwj1renRofb5AhWQt6QKHSeNAM0QFnoECA0QAQ&url=https%3A%2F%2Fhealtheconomicsreview.biomedcentral.com%2Farticles%2F10.1186%2F2191-1991-2-22&usg=AOvVaw3BqJCwlDFmMQHr_dnHZMzf
check this out
Here are some factors that affect the level and growth of total healthcare expenditures include
- income (per capita GDP),
- technological progress and variation in medical practice,
- and health system characteristics.
Per capita health care expenditure and publicly financing health expenditure can negatively affect total health expenditure due to:
1. **Increased Utilization**: Higher per capita expenditure often correlates with increased healthcare utilization, raising overall costs.
2. **Budget Constraints**: Public financing may limit available funds for healthcare, leading to reduced investment in infrastructure and services.
3. **Cost Inefficiencies**: High per capita spending doesn't always translate to efficient healthcare delivery, potentially inflating costs without improving outcomes.
4. **Dependency on Public Funding**: Reliance on public financing can create vulnerabilities if funding sources fluctuate or decrease, impacting overall expenditure.
Per capita health care expenditure and public financing of health expenditure can negatively affect total health expenditure due to increased utilization, budget constraints, cost inefficiencies, and dependency on public funding.
Per capita healthcare spending and public financing of healthcare can decrease total healthcare expenditure due to factors such as heightened utilization, fiscal constraints, inefficiencies in cost, and reliance on public funding.
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