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How Useful are Benefit Incidence Analyses of Public Education and Health Spending

Author/Editor: Davoodi, Hamid Reza | Tiongson, Erwin | Asawanuchit, Sawitree S.
Authorized for Distribution: November 1, 2003
Electronic Access: Free Full Text (PDF file size is 398KB)
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Disclaimer: This Working Paper should not be reported as representing the views of the IMF. The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate.

Summary: This paper provides a primer on benefit incidence analysis (BIA) for macroeconomists and a new data set on the benefit incidence of education and health spending covering 56 countries over 1960-2000, representing a significant improvement in quality and coverage over existing compilations. The paper demonstrates the usefulness of BIA in two dimensions. First, the paper finds, among other things, that overall education and health spending are poorly targeted; benefits from primary education and primary health care go disproportionately to the middle class, particularly in sub-Saharan Africa, HIPCs and transition economies; but targeting has improved in the 1990s. Second, simple measures of association show that countries with a more propoor incidence of education and health spending tend to have better education and health outcomes, good governance, high per capita income, and wider accessibility to information. The paper explores policy implications of these findings.
 
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Series: Working Paper No. 03/227
Subject(s): Government expenditures | Developing countries | Education | Health care
Author's keyword(s): benefit incidence | public spending on education and health | targeting | progressivity
 
English  
    Published:   November 1, 2003        
    ISBN/ISSN:   1934-7073   Format:   Paper
    Stock No:   WPIEA2272003   Pages:   47
    Price:   US$15.00 (Academic Rate: US$15.00 )
       
     
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