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Out- Of- Pocket health expenditure and household consumption patterns in Benin: Is there a crowding out effect?

Author

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  • Hilaire Gbodja Houeninvo

    (University of Abomey Calavi
    African Economic Research Consortium)

  • Venant Cossi Celestin Quenum

    (University of Abomey Calavi)

  • Melain Modeste Senou

    (University of Abomey Calavi
    African Economic Research Consortium
    African Centre of Excellence for Inequality Research)

Abstract

Health shocks are common and have serious consequences for households in developing countries where health insurance is lacking. In this study, we examine whether out-of-pocket health expenditures crowd out household consumption of non-healthcare necessities, such as education items in Benin using a sample of 14,952 households from the global vulnerability and food security analysis survey. We estimated a system of conditional Engel curves with three stage least squared (3SLS) and seemingly unrelated regression (SURE) for seven categories of goods using the Quadratic Almost Ideal Demand System (QUAIDS) in the form of budget shares corresponding to proportions of total non-health expenditure. Findings show that out of pocket health expenditure leads households to spend more on health care that in fine crowd out expenditure in other necessity goods such as education item. These findings highlight the need for social protection programs to mitigate the impact of health shocks on vulnerable households in Benin.

Suggested Citation

  • Hilaire Gbodja Houeninvo & Venant Cossi Celestin Quenum & Melain Modeste Senou, 2023. "Out- Of- Pocket health expenditure and household consumption patterns in Benin: Is there a crowding out effect?," Health Economics Review, Springer, vol. 13(1), pages 1-20, December.
  • Handle: RePEc:spr:hecrev:v:13:y:2023:i:1:d:10.1186_s13561-023-00429-8
    DOI: 10.1186/s13561-023-00429-8
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    References listed on IDEAS

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    More about this item

    Keywords

    Health shocks; Consumption patterns; Out of Pocket; Crowding out effect; SURE; Benin;
    All these keywords.

    JEL classification:

    • O12 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Microeconomic Analyses of Economic Development
    • I13 - Health, Education, and Welfare - - Health - - - Health Insurance, Public and Private

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