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Evaluating the impact of SUS transfers on municipalities' health expenditures

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  • Fernando João Alexandre Parmagnani
  • Fabiana Fontes Rocha

Abstract

There is evidence in the literature that spending on a specific area could increase less than the amount transferred to that area, being the rest of the resources used to finance other public goods and services. This result became known as fungibility effect. The purpose of this paper is to evaluate the impact of SUS transfers on health spending, seeking to verify if most of the resources transferred by the government are in fact being used in health. We employed classical panel models, as well as fixed effect quantile regressions. We find evidence on the fungibility effect since for each R$ 1 transferred to health about R $ 0.20 are directed towards other areas. Besides the effect is smaller for municipalities with higher spending on health.

Suggested Citation

  • Fernando João Alexandre Parmagnani & Fabiana Fontes Rocha, 2013. "Evaluating the impact of SUS transfers on municipalities' health expenditures," Working Papers, Department of Economics 2013_23, University of São Paulo (FEA-USP), revised 15 Jan 2014.
    • Handle: RePEc:spa:wpaper:2013wpecon23
    as

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    File URL: http://www.repec.eae.fea.usp.br/documentos/Parmagnani_Rocha23WP.pdf
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    References listed on IDEAS

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    More about this item

    Keywords

    transfers; health; fungibility; quantile regressions;
    All these keywords.

    JEL classification:

    • H55 - Public Economics - - National Government Expenditures and Related Policies - - - Social Security and Public Pensions
    • H75 - Public Economics - - State and Local Government; Intergovernmental Relations - - - State and Local Government: Health, Education, and Welfare
    • H77 - Public Economics - - State and Local Government; Intergovernmental Relations - - - Intergovernmental Relations; Federalism

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