IDEAS home Printed from https://ideas.repec.org/p/ind/igiwpp/2014-049.html
   My bibliography  Save this paper

Impact of public spending on health and education of children in India: A Panel data simultaneous equation model

Author

Listed:
  • Runu Bhakta

    (Indira Gandhi Institute of Development Research)

Abstract

The basic objective of the study is to examine the impact of public expenditure on health and education after incorporating the linkages between health status of children and their educational achievements in India. This study has developed a simultaneous equation model among health and education of children, and public expenditure on these sectors. Three stage least squares technique is applied to get consistent and efficient estimates of the system. The results show that bad health status among children, captured by high IMR, is responsible to have lower enrolment rates and high dropout rates in primary level. In addition, public expenditure on Supplementary Nutritional Program has indirect positive impact on education through the improvements in health status of children whereas additional expenditure on elementary education has positive impact on enrolment rates, but at diminishing rate. Moreover, public expenditure on elementary education has greater impact on enrolment as compared to dropout rates.

Suggested Citation

  • Runu Bhakta, 2014. "Impact of public spending on health and education of children in India: A Panel data simultaneous equation model," Indira Gandhi Institute of Development Research, Mumbai Working Papers 2014-049, Indira Gandhi Institute of Development Research, Mumbai, India.
    • Handle: RePEc:ind:igiwpp:2014-049
    as

    Download full text from publisher

    File URL: http://www.igidr.ac.in/pdf/publication/WP-2014-049.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Ana Poças & Elias Soukiazis, 2013. "Explaining the interrelations between health, education and standards of living in Portugal. A simultaneous equation approach," International Journal of Public Policy, Inderscience Enterprises Ltd, vol. 9(3), pages 167-187.
    2. Cai, Lixin, 2010. "The relationship between health and labour force participation: Evidence from a panel data simultaneous equation model," Labour Economics, Elsevier, vol. 17(1), pages 77-90, January.
    3. Moock, Peter R. & Leslie, Joanne, 1986. "Childhood malnutrition and schooling in the Terai region of Nepal," Journal of Development Economics, Elsevier, vol. 20(1), pages 33-52.
    4. Mansour Farahani & S. V. Subramanian & David Canning, 2010. "Effects of state‐level public spending on health on the mortality probability in India," Health Economics, John Wiley & Sons, Ltd., vol. 19(11), pages 1361-1376, November.
    5. Jamison, Dean T., 1986. "Child malnutrition and school performance in China," Journal of Development Economics, Elsevier, vol. 20(2), pages 299-309, March.
    6. Sonia Bhalotra, 2007. "Spending to save? State health expenditure and infant mortality in India," Health Economics, John Wiley & Sons, Ltd., vol. 16(9), pages 911-928, September.
    7. Gupta, Sanjeev & Verhoeven, Marijn & Tiongson, Erwin R., 2002. "The effectiveness of government spending on education and health care in developing and transition economies," European Journal of Political Economy, Elsevier, vol. 18(4), pages 717-737, November.
    8. Tudorel Andrei & Ani Matei & Bogdan Oancea, 2009. "Simultaneous Equations Models Used in the Study of Some Issues Related to the Corruption and Performance of Services in the Public Health System," Theoretical and Applied Economics, Asociatia Generala a Economistilor din Romania / Editura Economica, vol. 1(01(530)), pages 03-18, January.
    9. Behrman, Jere R, 1996. "The Impact of Health and Nutrition on Education," The World Bank Research Observer, World Bank, vol. 11(1), pages 23-37, February.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Venkatanarayana Motkuri & Ellanki Revathi, 2023. "Public Expenditure on Education in India: Centre–State Allocations," Journal of Development Policy and Practice, , vol. 8(2), pages 194-208, July.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Harold Alderman & Jere Behrman & Victory Lavy & Rekha Menon, "undated". "Child Nutrition, Child Health, and School Enrollment: A Longitudinal Analysis," CARESS Working Papres 97-21, University of Pennsylvania Center for Analytic Research and Economics in the Social Sciences.
    2. repec:dau:papers:123456789/4935 is not listed on IDEAS
    3. Dhiman Das, 2017. "Public expenditure and healthcare utilization: the case of reproductive health care in India," International Journal of Health Economics and Management, Springer, vol. 17(4), pages 473-494, December.
    4. Mohanty, Ranjan Kumar & Behera, Deepak Kumar, 2020. "How Effective is Public Health Care Expenditure in Improving Health Outcome? An Empirical Evidence from the Indian States," Working Papers 20/300, National Institute of Public Finance and Policy.
    5. Behrman, Jere R. & Hoddinott, John, 2001. "An evaluation of the impact of PROGRESA on pre-school child height," FCND briefs 104, International Food Policy Research Institute (IFPRI).
    6. Behrman, Jere R., 1999. "Schooling in Asia: Selected microevidence on determinants, effects, and policy implications," Journal of Asian Economics, Elsevier, vol. 10(2), pages 147-194.
    7. Kaushal, Kaushalendra Kumar & F Ram, Faujdar Ram & Abhishek, Abhishek Singh, 2013. "Public Spending on Health and Childhood Mortality in India," MPRA Paper 48680, University Library of Munich, Germany.
    8. Bienvenido Ortega & Jesús Sanjuán & Antonio Casquero, 2017. "Determinants of efficiency in reducing child mortality in developing countries. The role of inequality and government effectiveness," Health Care Management Science, Springer, vol. 20(4), pages 500-516, December.
    9. Jean-Christophe Dumont, 2000. "Les effets de la capacité physique sur l’acquisition des compétences : une application au cas de Madagascar," Working Papers DT/2000/04, DIAL (Développement, Institutions et Mondialisation).
    10. Susanna M Makela & Rakhi Dandona & T R Dilip & Lalit Dandona, 2013. "Social Sector Expenditure and Child Mortality in India: A State-Level Analysis from 1997 to 2009," PLOS ONE, Public Library of Science, vol. 8(2), pages 1-10, February.
    11. S. R. Osmani, 1987. "Controversies in Nutrition and their Implications for the Economics of Food," WIDER Working Paper Series wp-1987-016, World Institute for Development Economic Research (UNU-WIDER).
    12. Nilgun Yavuz & Veli Yilanci & Zehra Ozturk, 2013. "Is health care a luxury or a necessity or both? Evidence from Turkey," The European Journal of Health Economics, Springer;Deutsche Gesellschaft für Gesundheitsökonomie (DGGÖ), vol. 14(1), pages 5-10, February.
    13. Szklo, Michel & Clarke, Damian & Rocha, Rudi, 2024. "Does Increasing Public Spending in Health Improve Health? Lessons from a Constitutional Reform in Brazil," IZA Discussion Papers 16829, Institute of Labor Economics (IZA).
    14. Gomes-Neto, Joao Batista & Hanushek, Eric A. & Leite, Raimundo Helio & Frota-Bezzera, Roberto Claudio, 1997. "Health and schooling: Evidence and policy implications for developing countries," Economics of Education Review, Elsevier, vol. 16(3), pages 271-282, June.
    15. Stephen Knowles & P. Dorian Owen, 1997. "Education and Health in an Effective‐Labour Empirical Growth Model," The Economic Record, The Economic Society of Australia, vol. 73(223), pages 314-328, December.
    16. Runu Bhatka, 2014. "Impact of Public Spending on Health and Education of Children in India: A Panel Data Simultaneous Equation Model," Working Papers id:6333, eSocialSciences.
    17. Mansour Farahani & S. V. Subramanian & David Canning, 2010. "Effects of state‐level public spending on health on the mortality probability in India," Health Economics, John Wiley & Sons, Ltd., vol. 19(11), pages 1361-1376, November.
    18. Noshaba Aziz & Jun He & Tanwne Sarker & Hongguang Sui, 2021. "Exploring the Role of Health Expenditure and Maternal Mortality in South Asian Countries: An Approach towards Shaping Better Health Policy," IJERPH, MDPI, vol. 18(21), pages 1-14, November.
    19. Jessica Ochalek & Miqdad Asaria & Pei Fen Chuar & James Lomas & Sumit Mazumdar & Karl Claxton, 2019. "Assessing health opportunity costs for the Indian health care systems," Working Papers 161cherp, Centre for Health Economics, University of York.
    20. Cortez, Maria Patricia A., 1999. "Nutrition and the cognitive ability of children: evidence from Egypt," ISU General Staff Papers 1999010108000013559, Iowa State University, Department of Economics.
    21. Vermeersch, Christel & Kremer, Michael, 2005. "Schools meals, educational achievement and school competition: evidence from a randomized evaluation," Policy Research Working Paper Series 3523, The World Bank.

    More about this item

    Keywords

    Public Expenditure; Education; Health; SEM; 3SLS; IMR; GER; NER; Dropout Rates;
    All these keywords.

    JEL classification:

    • H51 - Public Economics - - National Government Expenditures and Related Policies - - - Government Expenditures and Health
    • H52 - Public Economics - - National Government Expenditures and Related Policies - - - Government Expenditures and Education
    • I18 - Health, Education, and Welfare - - Health - - - Government Policy; Regulation; Public Health
    • I28 - Health, Education, and Welfare - - Education - - - Government Policy
    • C33 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Models with Panel Data; Spatio-temporal Models

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ind:igiwpp:2014-049. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Shamprasad M. Pujar (email available below). General contact details of provider: https://edirc.repec.org/data/igidrin.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.