Potrafke, Niklas (2010): The growth of public health expenditures in OECD countries: do government ideology and electoral motives matter?
Preview |
PDF
MPRA_paper_24083.pdf Download (326kB) | Preview |
Abstract
This paper empirically evaluates whether government ideology and electoral motives influenced the growth of public health expenditures in 18 OECD countries over the 1971-2004 period. The results suggest that incumbents behaved opportunistically and increased the growth of public health expenditures in election years. Government ideology did not have an influence. These findings indicate (1) the importance of public health in policy debates before elections and (2) the political pressure towards re-organizing public health policy platforms especially in times of demographic change.
Item Type: | MPRA Paper |
---|---|
Original Title: | The growth of public health expenditures in OECD countries: do government ideology and electoral motives matter? |
Language: | English |
Keywords: | public health expenditures, health policies, government ideology, partisan politics, electoral cycles, panel data |
Subjects: | H - Public Economics > H5 - National Government Expenditures and Related Policies > H51 - Government Expenditures and Health I - Health, Education, and Welfare > I1 - Health > I18 - Government Policy ; Regulation ; Public Health C - Mathematical and Quantitative Methods > C2 - Single Equation Models ; Single Variables > C23 - Panel Data Models ; Spatio-temporal Models D - Microeconomics > D7 - Analysis of Collective Decision-Making > D72 - Political Processes: Rent-Seeking, Lobbying, Elections, Legislatures, and Voting Behavior |
Item ID: | 24083 |
Depositing User: | Niklas Potrafke |
Date Deposited: | 23 Jul 2010 14:34 |
Last Modified: | 26 Sep 2019 08:26 |
References: | Ahmad N, Lequiller F, Marianna P, Pilat D, Schreyer P, Wölfl A 2003. Comparing labour productivity growth in the OECD area: the role of measurement. OECD – STI Working Paper, No. 14/03. Alesina A 1987. Macroeconomic policy in a two-party system as a repeated game. Quarterly Journal of Economics 102 (3); 651-678. Alesina A, Roubini N, Cohen G D 1997. Political cycles and the macroeconomy. The MIT Press: Cambridge. Alt J E, Lassen D D 2006. Fiscal transparency, political parties, and debt in OECD countries. European Economic Review 50; 1403-1439. Arellano M, Bond S 1991. Some tests of specification for panel data: Monte Carlo evidence and an application to employment equations. Review of Economic Studies 58; 277–297. Baumol W J 1967. Macroeconomics of unbalanced growth: The anatomy of urban crisis. American Economic Review 57 (3); 415-426. Beck N, Katz J N 1995. What to do (and not to do) with time-series-cross-section data. American Political Science Review 89(3), 634-647. Beck N, Katz J N 1996. Nuisance vs. substance: Specifying and estimating time-series cross section models. Political Analysis 6(1), 1-36. Behr A 2003. A comparison of dynamic panel data estimators: Monte Carlo evidence and an application to the investment function. Discussion paper 05/03, Economic Research Centre of the Deutsche Bundesbank. Bloom D E, Canning D, Mansfield, R K, Moore M 2007. Demographic change, social security systems, and savings. Journal of Monetary Economics 54; 92-114. Blundell R W, Bond S R 1998. Initial conditions and moment restrictions in dynamic panel data models. Journal of Econometrics 87(1), 115–143. Boix C 1998. Political parties, growth and equality – Conservative and social democratic economic strategies in the world economy. Cambridge University Press: Cambridge. Breitung J 2000. The local power of some unit root tests for panel data. In Baltagi, B (eds.), Advances in Econometrics, Vol. 15: Nonstationary panels, panel cointegration, and dynamic panels. JAI Press: Amsterdam; 1990. 161-178. Breitung J, Pesaran M H 2008. Unit Roots and cointegration in panels. In Matyas L, Sevestre P (eds), The econometrics of panel data: fundamentals and recent developments in theory and practice. Kluwer Academic Publishers: Dordrecht; 2008, 279-322. Brender A, Drazen A 2005. Political budget cycles in new versus established democracies. Journal of Monetary Economics 52 (7); 1271-1295. Breyer F 1995. The political economy of rationing in social health insurance. Journal of Population Economics 8 (2); 137-148. Breyer F, Haufler A 2000. Health care reform: Separating insurance from income redistribution. International Tax and Public Finance 7 (4-5); 445-461. Breyer F, Stolte K 2001. Demographic change, endogenous labor supply, and the feasibility of pension reform. Journal of Population Economics 14 (3), 409-424. Breyer F, Zweifel P, Kifmann M 2009. Health Economics. Springer-Verlag; Berlin Heidelberg; 2nd edition. Bruno G S F 2005a. Approximating the bias of the LSDV estimator for dynamic unbalanced panel data models. Economics Letters 87 (3); 361-366. Bruno G S F 2005b. Estimation and inference in dynamic unbalanced panel data models with a small number of individuals. Stata Journal 5 (4); 473-500. Budge I, Keman H, Woldendorp J 1993. Political data 1945-1990. Party government in 20 democracies. European Journal of Political Research 24 (1); 1-119. Capucha L, Bomba T, Fernandes R, Matos G 2006. Portugal – a virtuous path towards minimum income? In: Ferrera M (eds.) Welfare state reform in Southern Europe – Fighting poverty and social exclusion in Italy, Spain, Portugal and Greece. Routledge: London and New York. (pp. 204-265). Carrion-i-Silvestre, J L 2005. Health care expenditure and GDP: Are they broken stationary? Journal of Health Economics 24 (5); 839-854. Choi, I 2001. Unit root tests for panel data. Journal of International Money and Finance 20 (2); 249-272. Culyer A J 1989. Cost containment in Europe. Health Care Financing Review (Annual Supplement); 21-32. De Donder P, Hindriks J 2007. Equilibrium social insurance with policy-motivated parties. European Journal of Political Economy 23 (3); 624-640. De Haan J, Sturm J-E 1994. Political and institutional determinants of fiscal policy in the European community. Public Choice 80 (1-2); 157-172. De Hoyos R E, Sarafidis V 2006. Testing for cross-sectional dependence in panel data models. Stata Journal 6(4); 482-496. DeVoe J 2003. A policy transformed by politics: The case of the 1973 Australian Community Health Program. Journal of Health Politics, Policy and Law 28 (1); 77-108. Dreher A 2006a. The influence of gloablization on taxes and social policy – an empirical analysis of OECD countries. European Journal of Political Economy 22 (1); 179-201. Dreher A 2006b. Does globalization affect growth? Evidence from a new index of globalization. Applied Economics 38 (10); 1091-1110. Dreher A, Gassebner M 2007. Greasing the wheels of entrepreneurship? The impact of regulations and corruption on firm entry. CESifo Working Paper No 2013. Dreher A, Sturm J-E, Ursprung H W 2008a. The impact of globalization on the composition of government expenditures: Evidence from panel data. Public Choice 134 (3-4); 263-292 Dreher A, Gaston N, Martens P 2008b. Measuring globalization – Gauging its consequences. Springer: Berlin. Edin P-A, Ohlsson H 1991. Political determinants of budget deficits: Coalition effects versus minority effects. European Economic Review 35 (8); 1597-1603. Franzese R 2000. Electoral and partisan manipulation of public debt in developed democracies, 1956-1990. In: Strauch R, von Hagen J (eds.) Institutions, politics and fiscal policy. Kluwer Academic Press: Dordrecht, 2000; 61-83. Frees E W 1995. Assessing cross-sectional correlation in panel data. Journal of Econometrics 69 (2); 393-414. Frey B S, Schneider F 1978a. An empirical study of politico-economic interaction in the United States. Review of Economics and Statistics 60 (2); 174-183. Frey B S, Schneider F 1978b. A politic-economic model of the United Kingdom. Economic Journal 88 (June); 243-253. Friedman M 1937. The use of ranks to avoid the assumption of normality implicit in the analysis of variance. Journal of the American Statistical Association 32 (200); 675-701. Friedrich R J 1982. In defence of multiplicative terms in multiple regression equations. American Journal of Political Science 26(4), 797-833. Garrett G 1998. Partisan politics in the global economy. Cambridge University Press: Cambridge. Gemmell N, Kneller R, Sanz I 2008. Foreign investment, international trade and the size and structure of public expenditures. European Journal of Political Economy 24 (1); 151-171. Gerdtham U-G, Jönsson B 1991. Conversion factor instability in international comparisons of health care expenditure. Journal of Health Economics 10 (2); 227-234. Gerdtham U-G, Jönsson B 2000. International comparisons of health expenditure: Theory, data and econometric analysis. In: Culyer, A J, Newhouse J P (eds.) Handbook of Health Economics, Volume 1 A, Elsevier: Amsterdam; 11-53. Gerdtham U-G, Löthgren M 2000. On stationarity and cointegration of international health expenditure and GDP. Journal of Health Economics 19 (4); 461-475. Gerdtham U-G, Søgaard J, Andersson F, Jönsson B 1992. An econometric analysis of health care expenditure: A cross-section study of the OECD countries. Journal of Health Economics 11 (1); 63-84. Hansen P, King A 1996. The determinants of health care expenditure: A cointegration approach. Journal of Health Economics 15 (1); 127-137. Hansen P, King A 1998. Health care expenditure and GDP: Panel data unit root test results – comment. Journal of Health Economics 17 (3); 377-381. Hartwig J K 2008. What drives health care expenditure? – Baumol’s model of ‘unbalanced growth’ revisited. Journal of Health Economics 27 (3); 603-623. Hartwig J K 2010. Can Baumol’s model of unbalanced growth contribute to explaining the secular rise in health care expenditure? – An alternative test. Applied Economics, forthcoming. Herwartz H, Theilen B 2003. The determinants of health care expenditure: testing pooling restrictions in small samples. Health Economics 12 (2); 113-124. Hibbs D A Jr 1977. Political parties and macroeconomic policy. American Political Science Review 71 (4); 1467-1487. Hitiris T, Posnett J 1992. The determinants and effects of health expenditure in developed countries. Journal of Health Economics 11 (2); 173-181. Im K S, Pesaran M H, Shin Y 2003. Testing for roots in heterogenous panels. Journal of Econometrics 115 (1); 53-74. Immergut E M 1992. Health politics – Interests and institutions in Western Europe. Cambridge University Press: Cambridge. Iversen T 2001. The dynamics of the welfare state expansion: Trade openness, deindustrialization, and partisan politics. In: Pierson P (eds.) The new politics of the welfare state. Oxford University Press: New York; 45-79. Jewell T, Lee J, Tieslau M, Strazicich M C 2003. Stationarity of health expenditures and GDP: evidence from panel unit root tests with heterogeneous structural breaks. Journal of Health Economics 22 (2); 313-323. Kifmann M 2005. Health insurance in a democracy: why is it public and why are premiums income‐related? Public Choice 124 (3); 283-308. Kittel B, Obinger H 2003. Politicial parties, institutions, and the dynamics of social expenditure in times of austerity. Journal of European Public Policy 10 (1); 20-45. Levin A, Lin C F, Chu C 2002. Unit root tests in panel data: asymptotic and finite-sample properties. Journal of Econometrics 108 (1); 1-24. Leu R E 1986. The public-private mix and international health care costs. In: Culyer A, Jönsson J B (eds.) Public and Private Health Care Services: Complementarities and Conflicts. Oxford: Basil Blackwell; 41-63. Maddala G S, Wu S 1999. A comparative study of unit root tests with panel data and a new simple test. Oxford Bulletin of Economics and Statistics 61; 631-652. McCoskey S K, Selden T M 1998. Health care expenditures and GDP: Panel data unit root test results. Journal of Health Economics 17 8§9; 369-376. Narayan P K 2006. Examining structural breaks and growth rates in international health expenditures. Journal of Health Economics 25 (5); 877-890. Newey W K, West K D 1987. A simple, positive semi-definite, heteroskedasticity and autocorrelation consistent covariance matrix. Econometrica 55 (3); 703-708. Newhouse J P 1977. Medical-care expenditure: a cross-national survey. Journal of Human Resources 12 (1); 115-125. Ng S 2006. Testing cross-section correlation in panel data using spacings. Journal of Business and Economics Statistics 24 (1); 12-23. Nordhaus W D 1975. The political business cycle. Review of Economic Studies 42 (2); 169-190. Okunade A A, Karakus M C, Okeke C 2004. Determinants of health expenditure growth of the OECD countries: jackknife resampling plan estimates. Health Care Management Science 7 (3); 173-83. Parkin D, McGuire A, Yule B 1987. Aggregate health care expenditures and national income – Iis health care a luxury good? Journal of Health Economics 6 (2); 109-127. Pesaran H M 2004. General diagnostic tests for cross section dependence in panels. Cambridge Working Paper in Economics 0435. Pesaran H M 2007. A simple panel unit root test in the presence of cross section dependence. Journal of Applied Econometrics 22 (2); 265-312. Poterba J M 1995. Government intervention in the markets for education and health care: how and why? NBER Working Paper No. 4916. Potrafke N 2009a. Did globalization restrict partisan politics? An empirical evaluation of social expenditures in a panel of OECD countries. Public Choice 140(1-2), 105-124. Potrafke N 2009b. Konvergenz in der deutschen Finanz- und Sozialpolitik? LIT Verlag, Hamburg/Münster. Potrafke N 2009c. Does government ideology influence political alignment with the U.S.? An empirical analysis of voting in the UN General Assembly. Review of International Organizations 4 (3), 245-268. Potrafke N 2010. Does government ideology influence product market deregulation? Empirical evidence from OECD countries. Public Choice 143(1-2), 135-155. Potrafke N 2011. Political cycles and economic performance in OECD countries: Empirical evidence from 1951-2006. Public Choice, forthcoming. Rogoff K 1990. Equilibrium political budget cycles. American Economic Review 80 (1); 21-36. Rogoff K, Sibert A 1988. Elections and macroeconomic policy cycles. Review of Economic Studies 55 (1); 1-16. Roodman D 2006. How to do xtabond2: An introduction to “Difference” and “System” GMM in Stata. Center for Global Development. Working Paper 103. Roodman D 2009. A note on the theme of too many instruments. Oxford Bulletin of Economics and Statistics 71(1), 135-158. Roubini N, Sachs J D 1989. Political and economic determinants of budget deficits in the industrial democracies. European Economic Review 33 (5); 903-938. Sanz I, Velázquez F, 2007. The role of aging in the growth of government and social welfare spending in the OECD. European Journal of Political Economy 23 (4); 917-931. Schmidt M G 1999.Warum die Gesundheitsausgaben wachsen. Befunde des Vergleichs demokratisch verfasster Länder. Politische Vierteljahresschrift 40 (2); 229-245. Shelton C A 2007. The size and composition of government expenditure. Journal of Public Economics 91 (11-12); 2230-2260. Shi M, Svensson J 2006. Political budget cycles: do they differ across countries and why? Journal of Public Economics 90 (8-9); 1367-1389. Stock J H, Watson M W 2008. Heteroskedasticity-robust standard errors for fixed-effects panel-data regression. Econometrica 76(1); 155-174. Tsebelis G 1995. Decision making in political systems: veto players in presidentialism, parliamentarism, multicameralism and multipartyism. British Journal of Political Science 25; 289-325. Tsebelis G 2002. Veto players – How political institutions work. Princeton: Princeton University Press. Tuohy C H, Flood C M, Stabile M 2004. How does private finance affect public health care systems? Marshalling the evidence from OECD nations. Journal of Health Politics, Policy and Law 29 (3); 360-396. Vergne C 2009. Democracy, elections and allocation of public expenditures in developing countries European Journal of Political Economy 25 (1), 63-77. Weingast B R, Shepsle K A, Johnson C 1981. The political economy of benefits and costs: a neoclassical approach to distribution politics. Journal of Political Economy 89 (4); 642-664. Woldendorp J, Keman H, Budge I 1998. Party government in 20 democracies: an update (1990-1995). European Journal of Political Research 33 (1); 125-164. Woldendorp J, Keman H, Budge I 2000. Party government in 48 democracies (1945-1998): composition, duration, personnel. Kluwer Academic Publishers: Dordrecht. Wooldridge J M 2002. Econometric analysis of cross section and panel data. Cambridge: MIT Press. |
URI: | https://mpra.ub.uni-muenchen.de/id/eprint/24083 |