Strategic interaction and the determinants of public health expenditures in China: a spatial panel perspective

Yihua Yu (), Li Zhang, Fanghua Li and Xinye Zheng ()

The Annals of Regional Science, 2013, vol. 50, issue 1, 203-221

Abstract: This paper examines determinants of expenditures on public health in China using a panel of 31 Chinese provinces covering the period 1997–2008. In particular, we propose a spatial Durbin panel model with spatial and time-period fixed effects to test whether China’s provinces incorporate the neighbor’s health spending behavior into their own decision making. We mainly find that a provincial government appears to decrease its own health spending as a response to the rise of health spending of its neighboring provinces, supportive of the expenditure externality hypothesis. Important policy implications are drawn. Copyright Springer-Verlag 2013

Keywords: I10; H7; C23 (search for similar items in EconPapers)
Date: 2013
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Citations: View citations in EconPapers (26)

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DOI: 10.1007/s00168-011-0488-7

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