Impact of Public Health-care Expenditure on economic growth
|Author:||Mgr. Vijayshekhar Nerva|
|Year:||2020 - summer|
|Leaders:|| prof. PhDr. Tomáš Havránek Ph.D.
|Work type:|| Masters
|Awards and prizes:|
|Abstract:||This thesis serves to investigate the varying effects of public health-care expenditure and private
health-care expenditure on economic growth in developed and developing countries. I have
contributed to the literature by using an expansive geographical dataset, lagged variables to address
endogeneity, and model averaging techniques.
I do so by first addressing the issue of model uncertainty, which is inherent in growth studies, by
using Bayesian Model Averaging as the method of analysis in the thesis. Examination of 126
countries (32 developed and 94 developing) in the period 2000-2018 reveals that there is no
variation in the impact of public health expenditure on economic growth between developed and
developing countries. Contrary to public health expenditure, private health expenditure has a
varying impact on both developed and developing countries. My analysis also reveals that the
results hold when lagged variables are used in the model. Public health expenditure has
unanimously a negative effect on economic growth in both developed and developing countries.
Private health expenditure, on the other hand, has a positive impact on economic growth in
developed and developing countries. Furthermore, I found that the results are robust to different