Research Article | OPEN ACCESS
On the Insufficiency of Government Medical and Health Care Expenditure of China: A Stochastic Frontier Analysis Based on Provincial Panel Data
Wang An and Hong Liyang
School of Economics, Xiamen University, Xiamen 361005, China
Research Journal of Applied Sciences, Engineering and Technology 2013 11:3105-3111
Received: September 16, 2012 | Accepted: October 31, 2012 | Published: April 05, 2013
Abstract
This study sets up a deterministic model of the optimal government medical and health care expenditure amount and then adopts the provincial panel data of China from 1999-2009 to study the insufficiency problem of government medical and health care expenditure with the help of stochastic frontier analysis (hereinafter referred as SFA) technique. Our result indicates that judging from both provincial level and national average level, although it has been alleviated during these years, there is still a huge gap between actual government expenditure and its optimal amount. We also find that the higher the degree of fiscal decentralization, the closer is the medical and health care expenditure to its optimal level. In addition, urbanization in China aggravates the insufficiency problem.
Keywords:
Fiscal decentralization, insufficiency, medical and health care expenditure, stochastic frontier analysis, urbanization,
Competing interests
The authors have no competing interests.
Open Access Policy
This article is distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution, and reproduction in any medium, provided you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license, and indicate if changes were made.
Copyright
The authors have no competing interests.
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ISSN (Online): 2040-7467
ISSN (Print): 2040-7459 |
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