Strategic interaction and the determinants of public health expenditures in China: A spatial panel perspective

Annals of Regional Science

Volumn 50, Issue 1, 2013, Pages 203-221

  Yu, Yihua ^a   Zhang, Li ^b   Li, Fanghua ^a   Zheng, Xinye ^a  

^a RENMIN UNIVERSITY OF CHINA   (China)

^b CENTRAL UNIVERSITY OF FINANCE AND ECONOMICS   (China)

Author keywords

[No Author keywords available]

Indexed keywords

DECISION MAKING; HEALTH EXPENDITURE; HEALTH POLICY; NUMERICAL MODEL; PANEL DATA; PUBLIC HEALTH;

CHINA;

EID: 84873253513     PISSN: 05701864     EISSN: 14320592     Source Type: Journal    
DOI: 10.1007/s00168-011-0488-7     Document Type: Article

References (69)

1. Anderson T, Hsiao C (1981) Estimation of dynamic models with error components. J Am Stat Assoc 76(375): 598-606.
2. Anselin L (1988) Spatial econometrics: methods and models. Kluwer Academic Publishers, Boston.
3. Anselin L (2003) Spatial externalities spatial multipliers, and spatial econometrics. Int Reg Sci Rev 26: 153-166.
4. Arellano M, Bond S (1991) Some tests of specification for panel data: Monte Carlo evidence and an application to employment equations. Rev Econ Stud 58: 277-297.
5. Arellano M, Bover O (1995) Another look at the instrumental variable estimation of error-components models. J Econom 68: 29-51.
6. Arraiz I, Drukker D, Kelejian H, Prucha I (2010) A spatial Cliff-Ord-type model with heteroskedastic innovations: small and large sample results. J Reg Sci 50(2): 592-614.
7. Baicker K (2005) The spillover effects of state spending. J Public Econ 89: 529-544.
8. Baltagi B, Moscone F (2010) Health care expenditure and income in the OECD reconsidered: evidence from panel data. Econ Model 27(1): 804-811.
9. Besley T, Case A (1995) Incumbent behavior: vote seeking, tax setting and yardstick competition. Am Econ Rev 85: 25-45.
10. Biles J (2003) Using spatial econometric techniques to estimate spatial multipliers: An assessment of regional economic policy in Yucatán, Mexico. Rev Reg Stud 33(2): 121-141.
11. Bivand R, Szymanski S (1997) Spatial dependence through local yardstick competition: theory and testing. Econ Lett 55: 257-265.
12. Blundell R, Bond S (1998) Initial conditions and moment restrictions in dynamic panel data models. J Econom 87(1): 115-143.
13. Bordignon M, Cerniglia F, Revelli F (2003) In search of yardstick competition: a spatial analysis of Italian municipality property tax setting. J Urban Econ 54: 199-217.
14. Brown J, Florax R, McNamara K (2009) Determinants of investment flows in U. S. manufacturing. Rev Reg Stud 39(3): 269-286.
15. Brueckner JK (2003) Strategic interaction among governments: an overview of empirical studies. Int Reg Sci Rev 26: 175-188.
16. Cantarero D (2005) Decentralization and health care expenditure: the Spanish case. Appl Econ Lett 12(15): 963-966.
17. Cantarero D, Lago-Penas S (2009) Decomposing the determinants of health care expenditure: the case of Spain, Instituto de Estudios Fiscales working paper, 10/09.
18. Case A (1992) Neighborhood influence and technological change. Reg Sci Urban Econ 22(3): 491-508.
19. Case A, Hines J, Rosen H (1993) Budget spillovers and fiscal policy interdependence. J Public Econ 52: 285-307.
20. Cliff A, Ord J (1981) Spatial processes: models and applications. Pion Ltd, London.
21. Costa-Font J, Pons-Novell J (2007) Public health expenditure and spatial interactions in a decentralized national health system. Health Econ 16(3): 291-306.
22. Crémieux P, Meilleur M, Ouelette P, Petit P, Zelder M, Potvin K (2005) Public and private pharmaceutical spending as determinants of health outcomes in Canada. Health Econ 14(1): 107-116.
23. Cutler DM (2004) Your money or your life: strong medicine for America's health care system. Oxford University Press, New York.
24. Das D, Kelejian H, Prucha I (2003) Finite sample properties of estimators of spatial autoregressive models with autoregressive disturbances. Pap Reg Sci 82(1): 1-26.
25. Di Matteo L, Di Matteo R (1998) Evidence on the determinants of Canadian provincial government health expenditure 1965-1991. J Health Econ 17(2): 211-228.
26. Dubin RA (1988) Estimation of regression coefficients in the presence of spatially correlated terms. Rev Econ Stat 70(3): 466-474.
27. Elhorst JP (2010) Spatial panel data models. In: Fischer M, Getis A (eds) Handbook of applied spatial analysis. Springer, Berlin, pp 377-407.
28. Elhorst JP, Fréret S (2009) Evidence of political yardstick competition in France using a two-regime spatial Durbin model with fixed effects. J Reg Sci 49(5): 931-951.
29. Ermini B, Santolini R (2010) Local expenditure interaction in Italian municipalities: do local council partnerships make a difference?. Local Govern Stud 36(5): 655-677.
30. Feldstein P (1988) Health care economics, 3rd edn. Wiley, London.
31. Finkelstein A (2007) The aggregate effects of health insurance: evidence from the introduction of medicare. Q J Econ 122(3): 1-37.
32. Folland S, Goodman A, Stano M (1993) The economics of health and health care. Macmillan Publishing Inc, New York.
33. Freret S (2006) Spatial analysis of horizontal fiscal interactions on local public expenditures: the French case. Paper presented at international workshop on spatial econometrics and statistics, Rome, May.
34. Garrett T, Wagner G, Wheelock D (2007) Regional disparities in the spatial correlation of state income growth, 1977-2002. Ann Reg Sci 41(3): 601-618.
35. Gao Q (2005) Ministry of Health Press Release, July 2 2005. http://www. moh. gov. cn.
36. Gerdtham U, Sogaard J, Andersson F, Jonsson B (1992) An econometric analysis of health care expenditure: a cross-section study of the OECD countries. J Health Econ 11(1): 63-84.
37. Hansen L (1982) Large sample properties of generalized method of moments estimators. Econometrica 50(4): 1029-1054.
38. Hernandez-Murillo R (2003) Strategic interaction in tax policies among states. Fed Reserve Bank St Louis Rev 85(3): 47-56.
39. Jones CI (2002) Why have health expenditures as a share of GDP risen so much? NBER working paper 9325.
40. Kelejian H, Prucha I (1998) A generalized spatial two-stage least squares procedure estimating a spatial autoregressive model with autoregressive disturbances. J Real Estate Finan Econ 17(1): 99-121.
41. Kelejian H, Prucha I (2010) Specification and estimation of spatial autoregressive models with autoregressive and heteroskedastic disturbances. J Econom 157(1): 3-67.
42. Kelejian H, Robinson D (1993) A suggested method of estimation for spatial interdependent models with autocorrelated errors, and an application to a county expenditure model. Pap Reg Sci 72: 297-312.
43. Ladd HF (1992) Mimicking of local tax burdens among neighboring counties. Public Finan Q 20(4): 450-467.
44. Lee LF, Yu J (2010) Some recent developments in spatial panel data models. Reg Sci Urban Econ 40: 255-271.
45. Leu RE (1986) The public-private mix and international health care costs. In: Culyer AJ, Jönsson B (eds) Public and private health care services: complementarities and conflicts. Basil Blackwell, Oxford.
46. LeSage JP, Pace RK (2009) Introduction to spatial econometrics. CRC Press/Taylor & Francis Group, London.
47. Manski CF (1993) Identification of endogenous social effects: the reflection problem. Rev Econ Stud 60(1): 531-542.
48. Martín JJM, Puerto López del Amo González M, Dolores Cano García M (2011) Review of the literature on the determinants of healthcare expenditure. Appl Econ 43(1): 19-46.
49. McGarvey MG, Walker MB (2004) GMM estimation of fiscal policy interdependence across states. Urban and Regional Analysis Group working paper no. 04-04.
50. Ministry of Health (2004) China health statistics yearbook. Ministry of Health, Beijing.
51. Moscone F, Knapp M (2005) Exploring the spatial pattern of mental health expenditure. J Ment Health Policy Econ 8: 205-217.
52. Moscone F, Knapp M, Tosetti E (2007) Mental health expenditure in England: a spatial panel approach. J Health Econ 26: 842-864.
53. National Bureau of Statistics: (2009) China statistical yearbook. China Statistics Press, Beijing.
54. Newhouse J (1977) Medical care expenditure: a cross national survey. J Hum Res 12: 115-125.
55. Newhouse JP (1992) Medical care costs: how much welfare loss?. J Econ Perspect 6(3): 3-21.
56. Nickell S (1981) Biases in dynamic models with fixed effects. Econometrica 49(6): 1417-1426.
57. Okunade AA, Murthy VNR (2002) Technology as a 'major driver' of health care costs: a cointegration analysis of the Newhouse conjecture. J Health Econ 21(1): 147-159.
58. Parkin D, McGuire A, Yule B (1987) Aggregate health care expenditures and national income: is health care a luxury good. J Health Econ 6(2): 109-127.
59. Rahman T (2008) Determinants of public health expenditure: some evidence from Indian states. Appl Econ Lett 15: 853-857.
60. Revelli F (2005) On spatial public finance empirics. Int Tax Pub Econ 12(4): 475-492.
61. Revelli F (2006) Performance rating and yardstick competition in social service provision. J Pub Econ 90(3): 459-475.
62. Roodman D (2006) How to do Xtabond2: an introduction to "difference" and "system" GMM in Stata. Stata J 9(1): 86-136.
63. Salmon P (1987) Decentralisation as an incentive scheme. Oxford Rev Econ Policy 3: 24-43.
64. Shi G, Gong S (2005) Analysis about China's health investment since market open and reform. China Dev Rev 7(1): 29-46.
65. Solé Ollé A (2003) Electoral accountability and tax mimicking: the effects of electoral margins, coalition government, and ideology. Eur J Polit Econ 19: 685-713.
66. Verbelen B (2006) Is taking a pill a day good for health expenditures? Evidence from a cross section time series analysis of 19 OECD countries from 1970-2000. IRISS working paper series 2006-01, IRISS at CEPS/INSTEAD.
67. Wilson J (1999) Theories of tax competition. Natl Tax J 52: 269-304.
68. World Health Organization (2007) Global health observatory. http://apps. who. int/ghodata/.
69. Yu Y (2009) CHINA_SPATDWM: Stata module to provide spatial distance matrices for Chinese provinces and cities, statistical software components S457059, Boston College Department of Economics.