Government response to increased demand for public services : The cyclicality of government health expenditures in the OECD

Abbott, Andrew and Jones, Philip (2021) Government response to increased demand for public services : The cyclicality of government health expenditures in the OECD. European Journal of Political Economy, 68: 101988. ISSN 0176-2680

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The more that health care expenditures are financed by general taxation, the greater the discretion governments are likely to exercise when timing increases in health care expenditures. Vote-maximising governments time increases in health care expenditures to occur in economic upturns, when voters are not as aware of the required increase in taxation. In recessions, they have an incentive to sustain expenditures on health care by diverting expenditures from other public expenditure programmes that voters perceive as low priority. In this way, government pursuit of a political agenda is likely to exert a systematic influence on the cyclicality of government expenditure. Predictions are tested with reference to the cyclicality of government health expenditures, for a sample of OECD countries from 2000 to 2012.

Item Type:
Journal Article
Journal or Publication Title:
European Journal of Political Economy
Additional Information:
This is the author’s version of a work that was accepted for publication in European Journal of Political Economy. Changes resulting from the publishing process, such as peer review, editing, corrections, structural formatting, and other quality control mechanisms may not be reflected in this document. Changes may have been made to this work since it was submitted for publication. A definitive version was subsequently published in European Journal of Political Economy, 68, 2021 DOI: 10.1016/j.ejpoleco.2020.101988
Uncontrolled Keywords:
?? health carebusiness cyclesfiscal illusionvoracity effectseconomics and econometricspolitical science and international relationse62h50h60discipline-based research ??
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Deposited On:
07 Dec 2020 13:50
Last Modified:
10 Jan 2024 00:30