Examining the Spatial Spillover Effects of Misery Index on Health Care Expenditure in Selected Developing Countries
Subject Areas : medical documents
hadi rezaei
1
(Phd Student of Economics, Facuity of Economics and Administrative, Lorestan University, Khoram Abad, Iran)
Mohammad Alizadeh
2
(Assistant Professor, Department of Economics, Facuity of Economics and Administrative, Lorestan University, Khoram Abad, Iran)
younes nademi
3
(Assistant Professor, Department of Economics, University of Ayatollah Ozma Boroujerdi, Boroujerd, Iran)
Keywords: health Care Expenditures, Spatial Econometrics, Space Dependence, spatial spillover, Misery index,
Abstract :
Introduction: The impact of different effective factors on health expenditure appears in the public health and health promotion. Health is a key element in economic, social, and political development and has an important role in different infrastructure of society. Considering the previous studies in this field with the classic assumption and according to the fact that existence of spatial dependence between the observations and disregarding these effects, the method of estimating conventional econometrics will be biased. Therefore, the main aim of this study is to consider the spatial dependence between observations. Methods: we use spatial econometrics model and spatial Durbin model in order to analyze the effective variables on health expenditure in 79 selected developing countries during (1995-2014). Results: The empirical results have indicated that there is a significant negative relationship between misery index and health expenditure. It means that if the weighted average of the logarithms of misery index increases 1 percent in neighboring countries, the average logarithm of health expenditures will decrease 0.13 percent in targeted country. Moreover, the effects of per capita income (0.54) and life expectancy (0.49) on per capita health care expenditure are significantly positive. Conclusion: The results of this study indicate that if governments do not have appropriate policies to prevent the illegal immigration of foreign nationals and face difficulties in employing labor in their country, the health of the community will be compromised in long term because of the escalation of unemployment and Lack of inhibition of inflation.
1- Mojtahed A, Javadi pour, S. Evaluation of health spending and economic growth in selected countries. The Iranian letter of Economic Research, 2004; 19: 54-31. [Persian]
2- Sulku SN, Caner A. Health Care Expenditure and Gross Domestic product: The Turkish Case. European Journal of Health Economics, 2011; 12: 29-38.
3- Mushkin SJ. Health as an Investment. Journal of Political Economy, 1962; 70 (5): 129–57.
4- Shiller RJ. Why do people dislike inflation? In christana D. Romer & D. H. Romer, eds. Reducing Inflation: Motivation and Strategy. Chicago: University of Chicago press; 1997: 1-15.
5- Marcus J. The effect of unemployment on the mental health of spouses Evidence from plant closures in Germany. Journal of Health Economics, 2013; 32 (3): 546–558.
6- Cressie N. Statistics for spatial data. Wiley Interscience; 1993.
7- Newhouse JP. Medical care expenditure: a cross-national survey. Journal of Human Resources, 1977; 12: 115-125.
8- Mac Donald G., Hopkins S. Unit Root Properties of OECD Health Care Expenditure and GDP Data. Health Economics, 2002; 11 (4): 371-385.
9- Wang Z, Rettenmaier AJ. A note on cointegration of health expenditure and income. Health Economics, 2007; 16: 559-578.
10- Murthy NR, Okunade AA. The core determinants of health expenditure in the African context: some econometric evidence for policy. Journal of Health Policy, 2009; 91: 57-62.
11- Amiri A, Gerdtham UG, Ventelou B. A new approach for estimation of longrun relationships in economic analysis using Engle-Granger and articial intelligence methods; 2011.
12- Beheshti MB, Sojudi S. Empirical analysis of the relationship between health expenditure and GDP in Iran. Quarterly economic survey, 1386; 4: 115-135. [Persian]
13- Sadeghi SK, Motafekker Azad M, Jalilpour S. Investigating Main Determinants of Private Healthcare Expenditure and Their Effects between Different Income Levels in Asian Countries. Social Welfare, 2014; 14 (53): 55-75. [Persian]
14- Shah Abadi A, Golparvar, M. Impact on health spending in the Iranian misery index. Journal of Economic Modeling, 1395; 1: 157-133. [Persian]
15- Filmer D, Pritchett L. The impact of public spending on health: Does money matter? Social science and Medicine, 1999; 49:1309-1323.
16- Moscone, F, Knapp, M. Exploring the Spatial Pattern of Mental Health Expenditure, The Journal of Mental Health Policy and Economics, J Ment Health Policy Econ, 2005; 8: 205-217.
17- Upton G, Fingleton B. Spatial Data Analysis by Example New York:John Wiley; 1985.
18- Anselin L. Exploring spatial data with GeoDa TM: A Workbook. University of Illinois, Urbana-Champaign Urbana; 2005.
19- Anselin L. GeoDa: An Introduction to Spatial Data Analysis. Geographical Analysis, 2006; 38: 5–22.
20- LeSage J, Pace, RK. Introduction to spatial econometrics. Taylor & Francis Group, Boca Raton, FL; 2009: 2742-33487.
21- Conley TG. GMM Estimation with cross sectional dependence. J Econometrics, 1999; 92: 1-45.
22- Viton Philip A. Notes on Spatial Econometric Models, CITY AND REGIONAL PLANNING; 2010: 870.
23- Cliff and Ord. Spatial Process. London: Pion; 1991.
24- Manski C. Identification of endogenous social effects: the reaction problem. Rev Econ Stud, 1993; 60: 531-542.
25- Saguatti A, Erickson, K, Gutierrez, L. Spatial panel models for the analysis of land prices. Third Congres, 172997; 2014: 25-27.
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1- Mojtahed A, Javadi pour, S. Evaluation of health spending and economic growth in selected countries. The Iranian letter of Economic Research, 2004; 19: 54-31. [Persian]
2- Sulku SN, Caner A. Health Care Expenditure and Gross Domestic product: The Turkish Case. European Journal of Health Economics, 2011; 12: 29-38.
3- Mushkin SJ. Health as an Investment. Journal of Political Economy, 1962; 70 (5): 129–57.
4- Shiller RJ. Why do people dislike inflation? In christana D. Romer & D. H. Romer, eds. Reducing Inflation: Motivation and Strategy. Chicago: University of Chicago press; 1997: 1-15.
5- Marcus J. The effect of unemployment on the mental health of spouses Evidence from plant closures in Germany. Journal of Health Economics, 2013; 32 (3): 546–558.
6- Cressie N. Statistics for spatial data. Wiley Interscience; 1993.
7- Newhouse JP. Medical care expenditure: a cross-national survey. Journal of Human Resources, 1977; 12: 115-125.
8- Mac Donald G., Hopkins S. Unit Root Properties of OECD Health Care Expenditure and GDP Data. Health Economics, 2002; 11 (4): 371-385.
9- Wang Z, Rettenmaier AJ. A note on cointegration of health expenditure and income. Health Economics, 2007; 16: 559-578.
10- Murthy NR, Okunade AA. The core determinants of health expenditure in the African context: some econometric evidence for policy. Journal of Health Policy, 2009; 91: 57-62.
11- Amiri A, Gerdtham UG, Ventelou B. A new approach for estimation of longrun relationships in economic analysis using Engle-Granger and articial intelligence methods; 2011.
12- Beheshti MB, Sojudi S. Empirical analysis of the relationship between health expenditure and GDP in Iran. Quarterly economic survey, 1386; 4: 115-135. [Persian]
13- Sadeghi SK, Motafekker Azad M, Jalilpour S. Investigating Main Determinants of Private Healthcare Expenditure and Their Effects between Different Income Levels in Asian Countries. Social Welfare, 2014; 14 (53): 55-75. [Persian]
14- Shah Abadi A, Golparvar, M. Impact on health spending in the Iranian misery index. Journal of Economic Modeling, 1395; 1: 157-133. [Persian]
15- Filmer D, Pritchett L. The impact of public spending on health: Does money matter? Social science and Medicine, 1999; 49:1309-1323.
16- Moscone, F, Knapp, M. Exploring the Spatial Pattern of Mental Health Expenditure, The Journal of Mental Health Policy and Economics, J Ment Health Policy Econ, 2005; 8: 205-217.
17- Upton G, Fingleton B. Spatial Data Analysis by Example New York:John Wiley; 1985.
18- Anselin L. Exploring spatial data with GeoDa TM: A Workbook. University of Illinois, Urbana-Champaign Urbana; 2005.
19- Anselin L. GeoDa: An Introduction to Spatial Data Analysis. Geographical Analysis, 2006; 38: 5–22.
20- LeSage J, Pace, RK. Introduction to spatial econometrics. Taylor & Francis Group, Boca Raton, FL; 2009: 2742-33487.
21- Conley TG. GMM Estimation with cross sectional dependence. J Econometrics, 1999; 92: 1-45.
22- Viton Philip A. Notes on Spatial Econometric Models, CITY AND REGIONAL PLANNING; 2010: 870.
23- Cliff and Ord. Spatial Process. London: Pion; 1991.
24- Manski C. Identification of endogenous social effects: the reaction problem. Rev Econ Stud, 1993; 60: 531-542.
25- Saguatti A, Erickson, K, Gutierrez, L. Spatial panel models for the analysis of land prices. Third Congres, 172997; 2014: 25-27.