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Empirical Research on the Efficiency of Local Government’s Health Spending in China

Author: LiuLi
Tutor: CuiZhiWen
School: Northwest Normal University
Course: Finance
Keywords: Health Spending Efficiency of Local Government Three-stage DEA Malmquist Index
CLC: F812.45
Type: Master's thesis
Year: 2013
Downloads: 22
Quote: 0
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The right of health is the most basic rights of a citizen.From the perspective ofsocial fairness,justice.It is not able to shirk responsibilities to guarantee all citizenscan enjoy basic public health services and basic medical services for contemporarygovernment.But from a practical point of view,The situation of health services is notoptimistic in China.Although the size of the local government’s spend on healthservices is rising,but the efficiency of the local government’s spend on health servicesis not taken seriously enough.The neglect of the efficiency of the local government’sspend on health services not only delay the realization of the objectives of newmedical reform in China,but also makes it difficult to optimize the structure ofexpenditures for all levels of financial.Therefore,the study of current situation andimpact factors on the efficiency of each government’s health expenditures of theprovinces in China, not only has important theoretical significance, but also it is veryurgent in the level of practice policy.In this paper,a three-stage DEA and Malmquist Index are used to study theefficiency of the local government’s expenditure on health,and analysis the dynamicprocess of the efficiency of the local government’s spend on health services in2007-2009.The following conclusions:1,through the use of the three-stage DEAmodel, eliminating the effect of environmental factors and random factors,Eachprovinces’(autonomous regions and municipalities directly under the centralgovernment)performance of the efficiency of the government’s spending on health isnot optimistic in China,the overall efficiency of the mean is only0.456,and is mainlylimited by the low pure technical efficiency.Pure technical efficiency which isadjusted is low,and there are significant differences,indicating that the relatively lowlevel of technology management of local government’s health expenditures.2,Theefficiency of health expenditures of local government is affected by populationdensity,GDP per person and fiscal decentralization in China.This can be reflectedfrom the SFA regression analysis of the return of input redundancy which is reflectedby population density, GDP per person and fiscal decentralization in the secondphase.The impact of various environmental factors on health redundancy of input is indifferent directions.3,from the perspective of dynamic efficiency of health expenditures,Malmquist Index sustains lower than1,showing that the spending onhealth of local government in total factor productivity continued to decline,andnegative growth.Therefore,based on empirical results,we propose to find the cause of the reasonsfor the differences between the different parts of the efficiency of governmentexpenditure on health,a clear need in the direction of improvement,and thedevelopment of strategy of regionalization expenditures,improving the transparencyof the budget system and democracy and strengthen the supervision of budgetexecution.Improve the efficiency of expenditure on health of local governmentaccording to the results of analysis in this article.

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CLC: > Economic > Fiscal, monetary > Finance, the state's financial > China's financial > Financial income and expenditure > Expenditure
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