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The Effect of the Government Health Expenditures on Mortality Rate.

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The Effect of the Government Health Expenditures on Mortality Rate.
CENTRAL EUROPEAN UNIVERSITY

THE EFFECT OF THE GOVERNMENT HEALTH EXPENDITURES ON MORTALITY RATE.

Submitted to: Dr. Peter Mihalyi
Submitted by: Narmina Rustamova

Abstract.
In this paper I analyze the impact of the government healthcare expenditures, as a percentage of gross domestic product, on mortality rate per 1000 population in the age group of 15-60. In order to make the estimation results more specific I add the employment rate of females to the initial regression. The estimation is realized using cross sectional data and applying Ordinary Least Squares method. According my estimations there is a statistically significant negative impact of the government expenditures, at the same time there is a positive impact of the employment rate among women on mortality rate, which is statistically significant as well.

Budapest 2009

I. Introduction.
The question of healthcare became one of the most actual issues in our daily life for the last few years. In order to increase the health statistics government of the different countries prepare various plans and spend certain amount of money to realize their plans. Do these spendings have any significant effect on the health care? In order to answer this question I run a regression of the government healthcare spendings on the mortality rate. Small amount of the government spendings evolves poor healthcare provision; hence variable describing government healthcare spending can be applied to determine the influence of the healthcare programs on the mortality rate. During estimation process I use cross sectional data, Ordinary Least Squares (OLS) method and assume that all OLS assumptions hold (see Wooldridge, 2002). The outline of the paper will be as following. In part 2, I give brief description of the variables. In part 3, I run the regression designed to estimate the impact of the spending in the healthcare sphere on the mortality rate. In



References: Wooldridge, Jeffrey M. 2002. Introductory econometrics: a modern approach. Mason, Ohio: South-Western. Bokhari, Gai and Gottret. 2007. “Government health expenditures and health outcomes”, Health Economics. William E. Griffiths, R. Carter Hill, and Guay C. 2008. “Using EViews for Principles of Econometrics”. John Wiley & Sons.

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