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Health expenditure, longevity, and child mortality: dynamic panel data approach with global data

Devdatta Ray () and Mikael Linden
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Devdatta Ray: University of Eastern Finland (UEF Kuopio Campus)
Mikael Linden: University of Eastern Finland (UEF Kuopio Campus)

International Journal of Health Economics and Management, 2020, vol. 20, issue 1, No 6, 99-119

Abstract: Abstract In this study, effects of public and private health expenditures on life expectancy at birth and infant mortality are analysed on a global scale with 195 countries in the years 1995–2014. The global data set is divided into country categories according to growth in life expectancy, decrease in infant mortality rate, and level of gross national income per capita. Some new dynamic panel model estimators, argued to be more efficient with high persistence series and predetermination compared to popular but complex GMM estimators, show that public health expenditures are generally more health-promoting than private expenditures. However, the health effects are not as great as primary education effects. Although the new estimators provide some new and valuable information on health expenditure effects on life expectancy and infant mortality on a global scale, they do not show desired robustness.

Keywords: Health expenditures; Low and high incomes; Life expectancy; Dynamic panel methods (search for similar items in EconPapers)
JEL-codes: I15 I18 H51 C30 (search for similar items in EconPapers)
Date: 2020
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DOI: 10.1007/s10754-019-09272-z

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International Journal of Health Economics and Management is currently edited by Leemore Dafny, Robert Town, Mark Pauly, David Dranove and Pedro Pita Barros

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