Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/229892
Authors: 
Blum, Johannes
Dorn, Florian
Heuer, Axel
Year of Publication: 
2021
Series/Report no.: 
ifo Working Paper No. 345
Abstract: 
We examine how political institutions influence health expenditure by using a panel of 151 developing and developed countries for the years 2000 to 2015 and four measures of democracy. Our pooled OLS analysis shows that democracies have 20-30% higher government health expenditure relative to GDP than their autocratic counterparts. An instrumental variable approach which exploits the regional diffusion of democracy confirms the positive effect of democracy on government health expenditure. Panel fixed effects and event study models also suggest a positive within-country effect of democratization on government health expenditure within a short period after regime transition. Democratic rule, however, does not turn out to significantly influence private health expenditure compared to autocracies. We conclude that democracies may care more for their citizens and strive to decrease inequalities in the access to health care.
Subjects: 
Democracy
health expenditure
development
instrumental variable
panel data
JEL: 
I15
I18
H51
P50
C23
C26
Document Type: 
Working Paper

Files in This Item:
File
Size





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