Subnational Health Spending and Soft Budget Constraints in OECD Countries

Author/Editor:

Ernesto Crivelli ; Adam Leive ; Thomas Stratmann

Publication Date:

June 1, 2010

Electronic Access:

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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:

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.

Series:

Working Paper No. 10/147

English

Publication Date:

June 1, 2010

ISBN/ISSN:

9781455201303/1018-5941

Stock No:

WPIEA2010147

Format:

Paper

Pages:

26

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