题名

HOW CURRENCY AND BANKING CRISES INFLUENCE PUBLIC EXPENDITURE ON HEALTH: EVIDENCE FROM CROSS-COUNTRY DATA

DOI

10.6292/AFPF.202212_(10).0006

作者

Chon-Kit Ao

关键词

Banking Crisis ; Currency Crisis ; Health ; Public Expenditure ; Unbalanced Panel Data

期刊名称

Advances in Financial Planning and Forecasting

卷期/出版年月

10期(2022 / 12 / 01)

页次

139 - 162

内容语文

英文

中文摘要

Understanding the societal impacts of financial crises is important as they can have highly deleterious effects on businesses, households, and economies. In this study, I explore the link between financial crises (i.e., both currency and banking crises) and per capita public expenditure on health. I compile information from 97 developed and developing economies between 1980 and 2012 and use unbalanced panel data. The analysis shows that health expenditure per capita is significantly lower when currency and banking crises have occurred simultaneously in the previous year. This finding is consistent with the conjecture that severe financial crises may hamper tax revenue and compel governments to reallocate resources away from the health sector in a fast-deteriorating fiscal situation. In addition, the study results are robust to placebo tests, and I find that the effects are concentrated in economies that have a potentially larger financial sector. I further provide evidence that the adverse effects are mainly driven by financial and banking crises that both started in the previous year.

主题分类 社會科學 > 經濟學
参考文献
  1. Abiad, A.,Leigh, D.,Tytell, I.,Balakrishnan, R.,Brooks., P. K.(2009).What’s the damage? Medium-term output dynamics after banking crises.Washington, DC:International Monetary Fund.
  2. Arellano, M.(1993).On the testing of correlated effects with panel data.Journal of Econometrics,59,87-97.
  3. Barro, R. J.(2002).Economic growth in East Asia before and after the financial crisis.Korean crisis and recovery,Washington, DC:
  4. Barro, R. J.,Lee, J. W.(2013).A new data set of educational attainment in the world, 1950–2010.Journal of Development Economics,104,184-198.
  5. Benos, N.,Karkalakos, S.,Zotou, S.(2019).Spatial and economic patterns in life expectancy among US States.Applied Economics,51,5856-5869.
  6. Cerra, V.,Saxena, S. C.(2008).Growth dynamics: The myth of economic recovery.American Economic Review,98,439-457.
  7. Cerra, V.,Saxena, S. C.(2005).Did output recover from the Asian crisis?.IMF Staff Papers,52,1-23.
  8. Cerra, V.,Saxena, S. C.(2005).Eurosclerosis or financial collapse: Why did Swedish incomes fall behind?.Washington, DC:International Monetary Fund.
  9. Claessens, S.,Tong, H.,Wei, S.-J.(2012).From the financial crisis to the real economy: Using firm-level data to identify transmission channels.Journal of International Economics,88,375-387.
  10. Crémieux, P.-Y.,Meilleur, M.-C.,Ouellette, P.,Petit, P.,Zelder, M.,Potvin, K.(2005).Public and private pharmaceutical spending as determinants of health outcomes in Canada.Health Economics,14,107-116.
  11. Crémieux, P.-Y.,Ouellette, P.,Pilon, C.(1999).Health care spending as determinants of health outcomes.Health Economics,8,627-639.
  12. Danninger, S.,Elekdag, S.,Balakrishnan, R.,Tytell, I.(2009).Chapter 4-How linkages fuel the fire: The transmission of financial stress from advanced to emerging economies.World economic outlook,Washington, DC:
  13. Feenstra, R. C.,Inklaar, R.,Timmer, M. P.(2015).The next generation of the Penn World Table.American Economic Review,105,3150-3182.
  14. Fogel, R. W.(2004).Health, nutrition, and economic growth.Economic Development and Cultural Change,52,643-658.
  15. Fogel, R. W.(1994).Economic growth, population theory, and physiology: The bearing of long-term processes on the making of economic policy.American Economic Review,84,369-395.
  16. Hausman, J. A.(1978).Specification tests in econometrics.Econometrica,46,1251-1271.
  17. He, L.,Li, N.(2020).The linkages between life expectancy and economic growth: Some new evidence.Empirical Economics,58,2381-2402.
  18. Iacovone, L.,Ferro, E.,Pereira-López, M.,Zavacka, V.(2019).Banking crises and exports: Lessons from the past.Journal of Development Economics,138,192-204.
  19. Iacovone, L., Ferro, E., Pereira-López, M., & Zavacka, V. (2019b). Data for: Banking crises and exports: Lessons from the past. Mendeley Data. V1[Data set]. doi:10.17632/dwnb9fspdn.1
  20. International Food Policy Research Institute. (2019). Statistics on public expenditures for economic development (SPEED) V3 [Data set]. doi:10.7910/DVN/MKX1TU
  21. Kaminsky, G. L.,Reinhart, C. M.(1999).The twin crises: The causes of banking and balance-of-payments problems.American Economic Review,89,473-500.
  22. Laeven, L.,Valencia, F.(2013).Systemic banking crises database.IMF Economic Review,61,225-270.
  23. Lall, S.,Cardarelli, R.,Elekdag, S.(2008).Chapter 4-Financial stress and economic downturn.World economic outlook,Washington, DC:
  24. Morgan, D.,Astolfi, R.(2015).Financial impact of the GFC: Health care spending across the OECD.Health Economics, Policy and Law,10(1),7-19.
  25. Obrizan, M.,Wehby, G. L.(2018).Health expenditures and global inequalities in longevity.World Development,101,28-36.
  26. Organisation for Economic Co-operation and Development. (2017). OECD.stat. [Data set]. Retrieved from https://stats.oecd.org/
  27. Psacharopoulos, G.(1994).Returns to investment in education: A global update.World Development,22,1325-1343.
  28. Wooldridge, J. M.(2002).Chapter 10-Basic linear unobserved effects panel data models.Econometric analysis of cross section and panel data,Cambridge, MA:
  29. World Bank. (2017). World Development Indicators online database. Retrieved from https://datacatalog.worldbank.org/search/dataset/0037712/World-Development-Indicators