Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/229389
Authors: 
Cooray, Arusha
Vadlamannati, Krishna Chaitanya
De Soysa, Indra
Year of Publication: 
2020
Series/Report no.: 
WIDER Working Paper No. 2020/165
Abstract: 
How has government healthcare spending prepared countries for tackling the COVID19 pandemic? Arguably, spending is the primary policy tool of governments in providing effective health. We argue that the effectiveness of spending in reducing COVID deaths is conditional on the existence of healthcare equity and lower political corruption, because the health sector is particularly susceptible to political spending. Our results, obtained using ordinary least squares (OLS) and two-stage least squares (2SLS) estimation, suggest that higher spending targeted at reducing inequitable access to health has reduced COVID deaths. Consistent with the findings of others, our results indirectly suggest that health spending is necessary, but not sufficient unless accompanied by building resilience against the spread of deadly disease. Equitable health systems ease the effects of COVID presumably because they allow states to reach and treat people. Spending aimed at increasing health system capacity by increasing access thus seems a sound strategy for fighting the spread of disease, ultimately benefiting us all.
Subjects: 
COVID-19
healthcare spending
corruption
healthcare equity
OLS
2SLS
JEL: 
H51
I14
I18
Persistent Identifier of the first edition: 
ISBN: 
978-92-9256-922-8
Document Type: 
Working Paper

Files in This Item:
File
Size
509.15 kB





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.