Assessing the Macroeconomic and Welfare Effects of Universal Health Coverage in Palestine

Sameera Awawda () and Mohammad Abu-Zaineh ()
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Sameera Awawda: AMSE - Aix-Marseille Sciences Economiques - EHESS - École des hautes études en sciences sociales - AMU - Aix Marseille Université - ECM - École Centrale de Marseille - CNRS - Centre National de la Recherche Scientifique
Mohammad Abu-Zaineh: AMSE - Aix-Marseille Sciences Economiques - EHESS - École des hautes études en sciences sociales - AMU - Aix Marseille Université - ECM - École Centrale de Marseille - CNRS - Centre National de la Recherche Scientifique

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Abstract: The implementation of "Universal Health Coverage" (UHC) poses serious challenges. Some of these stem from the macro-fiscal space considerations while others relate to the micro-behavioral sphere. This study seeks to assess the macro-fiscal conduciveness of UHC-oriented reforms in Palestine using a dynamic microsimulation-based Computable General Equilibrium (CGE) approach. Overall, UHC-oriented reform appears to enhance social welfare and economic growth. However, a parallel expansion in the breadth and width of coverage can have a sizeable budgetary impact, with fiscal deficit representing 14% of the GDP, of which about 2% is due to UHC. The latter would absorb about 10% of GDP, 15% of public spending and 57.4% of public spending on health. Under conditions of narrow fiscal space, an additional annual growth of 3.0% is required to progress along all the dimensions of UHC. A set of policy measures, which can help achieve UHC in a financially sustainable manner is advanced.

Keywords: Universal Health Coverage; Universal health coverage; Macro-fiscal space; Computable General Equilibrium; Dynamic microsimulation; Developing Countries Universal Health Coverage Dynamic Microsimulation Computable General Equilibrium (CGE) Fiscal Space Equivalent Variation Developing Countries; Computable General Equilibrium Demographic and Epidemiological Transitions; Dynamic Micro-simulation; Dynamic Microsimulation; Computable General Equilibrium (CGE); Fiscal Space; Equivalent Variation; Developing Countries; Developing Countries Universal Health Coverage; Demographic and Epidemiological Transitions (search for similar items in EconPapers)
Date: 2018-08-02
Note: View the original document on HAL open archive server: https://hal.science/hal-05717812v1
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Published in FEMISE RESEARCH PAPERS. 2018, pp.1-28

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