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Expenditure Decentralization and Citizen Satisfaction with Healthcare: Evidence from Urban China

Author

Listed:
  • Jian Huang

    (School of Public Finance and Taxation)

  • Longjin Chen

    (School of Public Finance and Taxation)

  • Jianjun Li

    (School of Public Finance and Taxation)

  • Wim Groot

    (Maastricht University)

Abstract

There has been considerable debate whether fiscal decentralization improves the provision of public goods. Based on individual-level data from a nationally representative survey and county-level data from national compendiums of financial statistics and demographic statistics, this study analyzes the effect of expenditure decentralization on citizen satisfaction with public healthcare in urban China. The results indicate a significantly positive effect of expenditure decentralization on citizen satisfaction with public healthcare. We also find evidence that the impact of decentralization is associated with residency status. Further investigation highlights the importance of local economic development in realizing the potential gains from a decentralized system. This study suggests that decision-making at lower levels of government is more responsive to local needs and that the efficiency gains of decentralization are not necessarily accompanied by equitable distribution of welfare.

Suggested Citation

  • Jian Huang & Longjin Chen & Jianjun Li & Wim Groot, 2017. "Expenditure Decentralization and Citizen Satisfaction with Healthcare: Evidence from Urban China," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 133(1), pages 333-344, August.
    • Handle: RePEc:spr:soinre:v:133:y:2017:i:1:d:10.1007_s11205-016-1361-y
    DOI: 10.1007/s11205-016-1361-y
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    1. Pu, Xiaohong & Zeng, Ming & Zhang, Weike, 2023. "Corporate sustainable development driven by high-quality innovation: Does fiscal decentralization really matter?," Economic Analysis and Policy, Elsevier, vol. 78(C), pages 273-289.

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