Yoo and Yang (2004) and Aguayo-Rico (2005) are examples of the few studies that have dealt with public health expenditure. In section 1, the new extension of the SGM model (equation 5), called Model 4 and with THE as a function of the GHE and PHE, is tested, and the results are compared with three different versions of the SGM (model 1, 2, and 3).
Conclusion
Health stock is the amount of health (if measurable) accumulated over time and retained even after time has passed. So the health stock would be the amount of health someone possesses at a given time.
The Fit of Model 4 In The SGM Framework: Initial Restriction
Exponential Terms
Therefore, there are five equations and variables which allow for the estimation of values forαthroughφ. The estimates of the exponents would allow us to compare relative values of the exponents of public health expenditure (θ) and private health expenditure (φ) – which would tell us the relative weight of each in explaining economic growth.
Results
For the OECD countries, there was a less clear hypothesis - it is easier to postulate a hypothesis for the developing countries where the health care consumption is low, so that the difference in health of workers can be explained by more primary, essential health care consumption such as ' a treatment for a cold, or a broken leg. It is less clear whether GHE or PHE matters more for the health of the population, hence economic growth, for the OECD countries because the level of health care consumption in these countries is generally above the minimum level needed to keep a person maintain their health. Therefore, the difference in the health level of workers is likely to be smaller, and this difference cannot be explained by a straightforward difference in the availability of basic health care as in developing countries, but must be explained by more subtle factors such as how the health care system is managed becomes, how effective and efficient such a health care system is in improving the health of its people, and whether the difference in the government or private share of the health care system matters.
However, the same reasoning used to explain such a finding in the sample of developing countries cannot be used here, because the population in OECD countries is rich enough to afford basic health care on its own, and the private health care sector it is well developed, and health care is widely available so that most people are not dependent on the government for most basic health care. PAL in developed countries, on the other hand, may be less important for economic growth, because at the level of health care consumption of developed countries, which is very high, a large part of PHE may be spent on electoral procedures that are not very beneficial to health in a way that promotes one's productivity.
Granger Causality Test
A possible explanation why GHE is more important in OECD countries could be that the government is more efficient in promoting the health of the working age population per dollar because they reduce the problem of excess costs that the private system has, covering procedures that are more . that are necessary for the state of well-being rather than unnecessary elective procedures, and make more efforts to contain costs. As already mentioned, elective plastic surgery, or rather excess number of tests performed, cannot contribute much to the economic performance of the labor. These are some possible reasons why GHE can contribute more to economic growth than PHE in the developed countries.
The efficacy of GHE and PHE on worker health is discussed further in Section 4 where various health indicators, including various measures of public and private health expenditure, are considered in a structured free regression. GDP and government spending on health per capita Tables 3, 4 and 5 show the results of the tests.
Results
The results show that PHE granger caused GDP in the sample of all countries and developing countries. The results for the sample of OECD and advanced countries were inconclusive, as both Equation 35 and Equation 36 were rejected at the 10% significance level. The causal relationship between GDP and GHE was also examined, and GDP was regressed with lags of GDP and GHE, and GHE was regressed with lags of GDP and GHE.
However, the results were the opposite for the OECD and Advanced Countries country sample, as Equation 40 was rejected and Equation 39 was not. This suggests that GDP caused variation in GHE, indicating that GHE is an endogenous component of GDP for this group of countries.
Conclusion
Model
Results
Health Expenditures
Other Health Variables
It was hypothesized that vaccination would be more important in reducing AM and increasing HALE in developing countries than in OECD countries. Data on percentage of population with access to sanitation and clean water were 100% for all but a few OECD countries (very small variance), so these variables were used only for developing countries. This tells us that the higher the ratio of nurses to doctors, the higher the AM and HALE in developing countries.
One of the problems in developing countries is that most health workers are nurses or nurse assistants, and very few are doctors. However, results (not reported for developing countries, but estimated with smaller sample size, the results of which are not reported in the table) showed that the enrollment rate matters more for OECD countries than developing countries.
Free Structured Regression - Refined
The fact that none of the variables were significant for HALE forced further refinement of the list of variables. Another important thing to note is the fact that expenditure on improving access to sanitation is not included in the calculation of public health expenditure. (WHO) This may indicate that the importance of government expenditure on improving health is not fully represented by GHE. Therefore, the inclusion of expenditure on sanitation in the GHE may be a better measure of total government spending on improving the health of the working population and is likely to give the GHE greater importance in explaining the variance between HALE and AM.
Three components of THE (the fractions of social security, private prepaid insurance and out-of-pocket in THE) were included in the OECD sample to examine their relative importance in explaining HALE and AM. This interesting finding suggests that the variance in HALE and AM is determined by how much of the country's total health spending is channeled through some form of private insurance rather than any other measure of health spending.
Results
Rather, publicly funded insurance plans are required to pay for medically necessary care, as mandated by the Canada Health Act, so the main conduit for health care is obviously a government-managed insurance scheme. Similarly, the UK reports 0% for social security, when the National Health System, a government-run health insurance, is the largest insurance scheme in the country. All of this suggests that such government-managed insurance (that of Canada, or the United Kingdom's National Health System) is not included in the Social Insurance category of the NHA, nor is it classified separately from the current National Health Accounts provided by the WHO (WHO only reports estimates for the social insurance fund and spending through the ministry of health within government health spending.) What can be concluded here, instead, is that private insurance is likely to be the least efficient channel. through which health care is consumed and other channels, perhaps a government managed one, or perhaps out-of-pocket spending (which is unlikely and did not show a significant relationship with health) is likely to be more efficient than insurance plans private.
This reinforces the finding that GHE is more important for economic growth in the sense that less money is spent through private insurance, which improves the health status of the population, and thus higher economic growth. This indirectly explains why GHE is relatively more important for economic growth – in terms of efficiency. a dollar spent on health care through private insurance produces less health care compared to a dollar spent through other means (such as government), and thus results in less health capital accumulation, which translates into less economic growth . The first component explains most of the variables, then the second component explains as much of the remaining variance as possible, and so on.
Interpretation of Data
This finding combined with the statistical significance of GHE per cap for HALE suggests that government health spending is in fact what matters most for health and is the most efficient channel of health care consumption in OECD countries. This suggests that weak national health maintenance efforts and total health expenditures are negatively related to health. It may be that developing countries with higher adult mortality and HALE spend a large proportion of their total resources (GDP) on health care to prevent the deterioration of national health.
This echoes and supports the finding from free structured regression earlier that the share of private health insurance was negatively correlated with HALE and positively with adult mortality. Furthermore, this is in the same logic that public health care is more important in economic output, as the results (theta is greater than phi) from section 2 showed.
Application to Health Expenditures
High net primary enrollments are also indicative of an active government as primary school education is largely a responsibility of the government in most countries, rather than private sectors. What is interesting and consistent with the findings of the earlier free structured regression is that private insurance appears to negatively affect health. Its unique feature is that it assigns a constant value to the substitutability of the factors of production included.
Y =A(ωK(t)−ρ+ (1−ω)L(t)−ρ)−1/ρ (41) Ais the scale parameter,ωis the relative weight of capital (thus, 1−ωthe relative weight of labor ), and ρ is the parameter yielding the elasticity of substitution,σ. If−1< ρ <0, then 1< σ <∞, labor and capital are substitutes, and this approaches perfect substitution if ρ is close to -1.
Results
Because the expression still contains a non-linear term, and cannot be linearized by taking a log in the usual way, the non-linear (nl) function of STATA was used to calculate the values for α,β,γ, to estimate ρ, andω.
Discussion
The logic behind the research was that occupational health is translated into economic performance of labour, and can therefore influence economic growth. This final section was intended to test the primary assumption of my research, which is that GHE and PHE contribute to economic growth by influencing labor health. It was difficult to interpret the results because most variables were often statistically insignificant.
This may be because privately managed insurance is less efficient at improving and maintaining the health of the workforce (possibly due to excess administrative costs, poor management or little effort to control costs), and thus is less important for the economic growth. Empirical evidence of the impact of health on economic growth.” Issues in Political Economy, Vol.
