Cover IMF Working Papers
Waste Not, Want Not: The Efficiency of Health Expenditure in Emerging and Developing Economies
Author:
Mr. Francesco Grigoli
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and
Mr. Javier Kapsoli
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Series:
IMF Working Papers
Volume/Issue:
Volume 2013: Issue 187
Language:
English
Publication Date:
28 Aug 2013
DOI:
https://doi.org/10.5089/9781484364260.001
ISBN:
9781484364260
ISSN:
1018-5941
Pages:
26
Keywords:
WP; public spending; health outcome; Health expenditure; efficiency; emerging economies; developing economies; efficiency analysis; correlation coefficient; health output; public health; Western Hemisphere economy; Health care spending; Expenditure efficiency; Purchasing power parity; Western Hemisphere
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IMF Working Papers describe research in progress by the author(s) and are published to elicit comments and to encourage debate. The views expressed in IMF Working Papers are those of the author(s) and do not necessarily represent the views of the IMF, its Executive Board, or IMF management.
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Public health spending is low in emerging and developing economies relative to advanced economies and health outputs and outcomes need to be substantially improved. Simply increasing public expenditure in the health sector, however, may not significantly affect health outcomes if the efficiency of this spending is low. This paper quantifies the inefficiency of public health expenditure and the associated potential gains for emerging and developing economies using a stochastic frontier model that controls for the socioeconomic determinants of health, and provides country-specific estimates. The results suggest that African economies have the lowest efficiency. At current spending levels, they could boost life expectancy up to about five years if they followed best practices.
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Cover IMF Working Papers
IMF Working Papers
ISSN:
1018-5941
Publisher:
International Monetary Fund
Volume 2013: Issue 187