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Effects of the COVID-19 Pandemic on the Budgetary Mechanism Established to Cover Public Health Expenditure. A Case Study of Romania

Author

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  • Mihaela Onofrei

    (Faculty of Economics and Business Administration, Alexandru Ioan Cuza University, 22 Carol I, 700505 Iasi, Romania)

  • Elena Cigu

    (Faculty of Economics and Business Administration, Alexandru Ioan Cuza University, 22 Carol I, 700505 Iasi, Romania)

  • Anca-Florentina Gavriluta (Vatamanu)

    (Faculty of Economics and Business Administration, Alexandru Ioan Cuza University, 22 Carol I, 700505 Iasi, Romania)

  • Ionel Bostan

    (Faculty of Law and Administrative Sciences, Ștefan cel Mare University, Universitatii 13, 720229 Suceava, Romania)

  • Florin Oprea

    (Faculty of Economics and Business Administration, Alexandru Ioan Cuza University, 22 Carol I, 700505 Iasi, Romania)

Abstract

The COVID-19 pandemic stressed the importance of understanding the sources of vulnerabilities that can lead to a financial crisis and highlighted the predominant impact on health systems. Firstly, the paper aims to conduct a retrospective analysis of the Romanian health care system, over the period of time 1985–2019, based on our own computed sustainability index for public health. Secondly, using the Gregory-Hansen cointegration method, we provide new evidence on the causal relationship between health expenditure and GDP for Romania over the period of time 1985–2017. Based on the retrospective analysis of the long-run co-movement between health spending and GDP, the study allows one to prospectively examine not only the effects of the COVID-19 pandemic on health care spending, but also to reveal the government’s fiscal position and vulnerabilities. Our results highlight the intergenerational costs related to the policy incoherence roadmap and regulatory fragmentation, stressing the importance of economic system resilience through fiscal diligence and the consolidation of the institutional context.

Suggested Citation

  • Mihaela Onofrei & Elena Cigu & Anca-Florentina Gavriluta (Vatamanu) & Ionel Bostan & Florin Oprea, 2021. "Effects of the COVID-19 Pandemic on the Budgetary Mechanism Established to Cover Public Health Expenditure. A Case Study of Romania," IJERPH, MDPI, vol. 18(3), pages 1-15, January.
    • Handle: RePEc:gam:jijerp:v:18:y:2021:i:3:p:1134-:d:488317
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    5. Liliana Dumitrache & Elena Stănculescu & Mariana Nae & Daniela Dumbrăveanu & Gabriel Simion & Ana Maria Taloș & Alina Mareci, 2021. "Post-Lockdown Effects on Students’ Mental Health in Romania: Perceived Stress, Missing Daily Social Interactions, and Boredom Proneness," IJERPH, MDPI, vol. 18(16), pages 1-17, August.
    6. Javier Cifuentes-Faura, 2022. "Is Environmental Pollution Associated with an Increased Number of COVID-19 Cases in Europe?," IJERPH, MDPI, vol. 19(2), pages 1-7, January.
    7. Despina Saghin & Maria-Magdalena Lupchian & Daniel Lucheș, 2022. "Social Cohesion and Community Resilience during the COVID-19 Pandemic in Northern Romania," IJERPH, MDPI, vol. 19(8), pages 1-15, April.

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