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Effects of state-level public spending on health on the mortality probability in India

Author

Listed:
  • Mansour Farahani

    (Harvard School of Public Health)

  • S. V. Subramanian

    (Harvard School of Public Health)

  • David Canning

    (Harvard School of Public Health)

Abstract
This study uses the second National Family Health Survey (NFHS-2) of India to estimate the effect of state public health spending on mortality across all age groups, controlling for individual, household, and state-level covariates. We use a state’s gross fiscal deficit as an instrument for its health spending. Our study shows a 10 % increase in public spending on health in India decreases the average probability of death by about 2%, with effects mainly on the young, the elderly, and women. Other major factors affecting mortality are rural residence, household poverty, and access to toilet facilities.

Suggested Citation

  • Mansour Farahani & S. V. Subramanian & David Canning, 2009. "Effects of state-level public spending on health on the mortality probability in India," PGDA Working Papers 5009, Program on the Global Demography of Aging.
    • Handle: RePEc:gdm:wpaper:5009
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    Cited by:

    1. Kaushal, Kaushalendra Kumar & F Ram, Faujdar Ram & Abhishek, Abhishek Singh, 2013. "Public Spending on Health and Childhood Mortality in India," MPRA Paper 48680, University Library of Munich, Germany.
    2. Sulekha Hembram & Sushil Kr. Haldar, 2019. "Beta, sigma and club convergence: Indian experience from 1980 to 2015," Indian Economic Review, Springer, vol. 54(2), pages 343-366, December.
    3. Susanna M Makela & Rakhi Dandona & T R Dilip & Lalit Dandona, 2013. "Social Sector Expenditure and Child Mortality in India: A State-Level Analysis from 1997 to 2009," PLOS ONE, Public Library of Science, vol. 8(2), pages 1-10, February.
    4. Mohamed, Elwasila, 2018. "Bounds Test Cointegration Approach to Examine Factors Contributing to Declining Maternal Mortality Ratio in Sudan (1969-2015)," MPRA Paper 84952, University Library of Munich, Germany.
    5. Bienvenido Ortega & Jesús Sanjuán & Antonio Casquero, 2017. "Determinants of efficiency in reducing child mortality in developing countries. The role of inequality and government effectiveness," Health Care Management Science, Springer, vol. 20(4), pages 500-516, December.
    6. Vogt, Tobias C. & Kluge, Fanny A., 2015. "Can public spending reduce mortality disparities? Findings from East Germany after reunification," The Journal of the Economics of Ageing, Elsevier, vol. 5(C), pages 7-13.
    7. Georgios Nikolopoulos & Pantelis Bagos & Theodoros Lytras & Stefanos Bonovas, 2011. "An Ecological Study of the Determinants of Differences in 2009 Pandemic Influenza Mortality Rates between Countries in Europe," PLOS ONE, Public Library of Science, vol. 6(5), pages 1-8, May.
    8. Mohanty, Ranjan Kumar & Behera, Deepak Kumar, 2020. "How Effective is Public Health Care Expenditure in Improving Health Outcome? An Empirical Evidence from the Indian States," Working Papers 20/300, National Institute of Public Finance and Policy.
    9. Kato, Kepha & Mugarura, Alex & Keberuka, Will & Matovu, Fred & Yawe, Bruno L., 2018. "The Effect of Public Health Spending on Under-five Mortality Rate in Uganda," African Journal of Economic Review, African Journal of Economic Review, vol. 6(1), January.
    10. Francesco Longo & Karl Claxton & James Lomas & Stephen Martin, 2020. "Does public long-term care expenditure improve care-related quality of life in England?," Working Papers 172cherp, Centre for Health Economics, University of York.
    11. Jessica Ochalek & Miqdad Asaria & Pei Fen Chuar & James Lomas & Sumit Mazumdar & Karl Claxton, 2019. "Assessing health opportunity costs for the Indian health care systems," Working Papers 161cherp, Centre for Health Economics, University of York.
    12. Jonas Minet Kinge & Jostein Grytten, 2021. "The impact of primary care physician density on perinatal health: Evidence from a natural experiment," Health Economics, John Wiley & Sons, Ltd., vol. 30(12), pages 2974-2994, December.
    13. Mulcahy, Patrick & Mahal, Ajay & McPake, Barbara & Kane, Sumit & Ghosh, Prabir Kumar & Lee, John Tayu, 2021. "Is there an association between public spending on health and choice of healthcare providers across socioeconomic groups in India? - Evidence from a national sample," Social Science & Medicine, Elsevier, vol. 285(C).
    14. Prashant Kumar Singh, 2013. "Trends in Child Immunization across Geographical Regions in India: Focus on Urban-Rural and Gender Differentials," PLOS ONE, Public Library of Science, vol. 8(9), pages 1-11, September.
    15. Runu Bhakta, 2014. "Impact of public spending on health and education of children in India: A Panel data simultaneous equation model," Indira Gandhi Institute of Development Research, Mumbai Working Papers 2014-049, Indira Gandhi Institute of Development Research, Mumbai, India.
    16. Biswajit Maitra & C.K. Mukhopadhyay, 2012. "Public spending on education, health care and economic growth in selected countries of Asia and the Pacific," Asia-Pacific Development Journal, United Nations Economic and Social Commission for Asia and the Pacific (ESCAP), vol. 19(2), pages 19-48, December.
    17. Barenberg, Andrew J. & Basu, Deepankar & Soylu, Ceren, 2015. "The Effect of Public Health Expenditure on Infant Mortality: Evidence from a Panel of Indian States, 1983-84 to 2011-12," UMASS Amherst Economics Working Papers 2015-19, University of Massachusetts Amherst, Department of Economics.
    18. Dhiman Das, 2017. "Public expenditure and healthcare utilization: the case of reproductive health care in India," International Journal of Health Economics and Management, Springer, vol. 17(4), pages 473-494, December.
    19. Beth Woods & Paul Revill & Mark Sculpher & Karl Claxton, 2015. "Country-level cost-effectiveness thresholds: initial estimates and the need for further research," Working Papers 109cherp, Centre for Health Economics, University of York.
    20. Iván Mejía-Guevara & Aditi Krishna & Daniel J. Corsi & S.V. Subramanian, 2015. "Individual and Ecological Variation in Child Undernutrition in India," Journal of South Asian Development, , vol. 10(2), pages 168-198, August.
    21. Jiannan Li & Bocong Yuan, 2019. "Understanding the effectiveness of government health expenditure in improving health equity: Preliminary evidence from global health expenditure and child mortality rate," International Journal of Health Planning and Management, Wiley Blackwell, vol. 34(4), pages 1968-1979, October.

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    Keywords

    Public spending; health; mortality probability; India;
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