Waste Not, Want Not: The Efficiency of Health Expenditure in Emerging and Developing Economies
IMF Working Papers, August 28, 2013
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Bibliographic details
- Authors: Francesco Grigoli, Javier Kapsoli
- Published: August 28, 2013
- Series: IMF Working Papers
- DOI: https://doi.org/10.5089/9781484364260.001
Summary
- Public health spending is low in emerging and developing economies relative to advanced economies.
- Health outputs and outcomes need to be substantially improved.
- Simply increasing public expenditure in the health sector may not significantly affect health outcomes if the efficiency of this spending is low.
- This paper quantifies the inefficiency of public health expenditure and the associated potential gains for emerging and developing economies using a stochastic frontier model that controls for the socioeconomic determinants of health, and provides country-specific estimates.
- The results suggest that African economies have the lowest efficiency.
- At current spending levels, they could boost life expectancy up to about five years if they followed best practices.
Methodology
- Analytical approach: stochastic frontier model.
- Controls: socioeconomic determinants of health (as specified in the paper).
- Output: country-specific estimates of inefficiency and potential gains in health outcomes.
Key findings and statistics
- Regional finding: African economies have the lowest efficiency in public health spending.
- Potential impact: At current spending levels, following best practices could boost life expectancy up to about five years.
- Publication metadata preserved from source:
- Pages: 26
- Volume: 2013
- Issue: 187
- Series: Working Paper No. 2013/187
- DOI: https://doi.org/10.5089/9781484364260.001
- Stock No: WPIEA2013187
- ISBN: 9781484364260
- ISSN: 1018-5941
- Publication date: August 28, 2013
- Authors: Francesco Grigoli, Javier Kapsoli
Policy implications and recommendations
- Prioritize improving the efficiency of existing public health expenditure rather than relying solely on increased spending.
- Implement best-practice policies and institutional reforms to raise efficiency toward frontier levels, which could substantially increase life expectancy without additional spending.
- Focused reforms in African economies could yield the largest gains in health outcomes given current low efficiency levels.
Source: Waste Not, Want Not: The Efficiency of Health Expenditure in Emerging and Developing Economies, IMF Working Papers 2013/187, August 28, 2013, Francesco Grigoli and Javier Kapsoli.