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Political electoral cycles and evolution of Italian health care system financing. A long run perspective

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  • Fiorillo, Fabio
  • Lucarelli, Stefano

Abstract

A notable feature of the Italian healthcare system – where funding is centralized and regions manage services locally – is the mismatch between expenditure and funding dynamics, leading to a structural deficit and frequent bailouts on the part the regions. To explain the actions of central and regional governments, we propose a strategic game. The nature of the game varies depending on whether we are in an electoral period for the renewal of the regional government. During elections, regional incumbents use their information advantages, and it is rational for them to increase the deficit, whereas for the central government, it is rational to reduce transfers.

Suggested Citation

  • Fiorillo, Fabio & Lucarelli, Stefano, 2024. "Political electoral cycles and evolution of Italian health care system financing. A long run perspective," Socio-Economic Planning Sciences, Elsevier, vol. 94(C).
    • Handle: RePEc:eee:soceps:v:94:y:2024:i:c:s0038012124001265
    DOI: 10.1016/j.seps.2024.101927
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    More about this item

    Keywords

    Electoral cycles; Public expenditure; Healthcare system; Italian economy; Regional incumbents;
    All these keywords.

    JEL classification:

    • H51 - Public Economics - - National Government Expenditures and Related Policies - - - Government Expenditures and Health
    • H75 - Public Economics - - State and Local Government; Intergovernmental Relations - - - State and Local Government: Health, Education, and Welfare
    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models

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