Subnational Health Spending and Soft Budget Constraints in OECD Countries
27 Pages Posted: 29 Jun 2010
Date Written: June 2010
Abstract
Government spending on health has grown as a percent of GDP over the last 40 years in industrialized countries. Widespread decentralization of healthcare systems has often accompanied this increase in spending. In this paper, we explore the effect of soft budget constraints on subnational health spending in a sample of OECD countries. We find countries where subnational governments rely primarily on central government financing and enjoy large borrowing autonomy have higher healthcare spending than those with more restrictions on subnational government borrowing.
Suggested Citation: Suggested Citation
Stratmann, Thomas and Crivelli, Ernesto and Leive, Adam, Subnational Health Spending and Soft Budget Constraints in OECD Countries (June 2010). IMF Working Paper No. 10/147, Available at SSRN: https://ssrn.com/abstract=1632146
Do you have negative results from your research you’d like to share?
Feedback
Feedback to SSRN
If you need immediate assistance, call 877-SSRNHelp (877 777 6435) in the United States, or +1 212 448 2500 outside of the United States, 8:30AM to 6:00PM U.S. Eastern, Monday - Friday.