Document Type : Original Article
Authors
1 MSc Student, Health Economics, Department of Health Services Management, School of Management and Medical Information, Isfahan University of Medical Sciences, Isfahan, Iran
2 Assistant Professor, Health Economics, Health Management and Economics Research Center, Isfahan University of Medical Sciences, Isfahan, Iran
Abstract
Introduction: Given the limitations of government resources, increasing the efficiency and the productivity when using those resources is an important and challenging issue in every country. Thus, the aim of this study was to measure the efficiency and the productivity of the government health expenditures in Iran and other countries with high human development index (HDI) over the period of 1995-2014.Methods: This descriptive study used panel data of Iran and high-HDI countries to measure the efficiency and the productivity of government health expenditure. The non-parametric data envelopment analysis (DEA) method and Malmquist productivity index (MPI) were used.Results: The calculated average technical efficiency for Iran and high-HDI countries was 45% and 52%, respectively. A total factor productivity changes (TFP) of 0.93 and 0.99 was also observed in Iran and high-HDI countries, respectively.Conclusion: Technological efficiency changes have a major impact on the total factor productivity in Iran and high-HDI countries. By identifying the efficiency trend in different years, new proposals can be brought forward to increase the efficiency of government health expenditure in the coming years.
Keywords
- Herrera SP. Efficiency of public spending in developing countries: An efficiency frontier approach Vol. 1, 2 & 3. Washington, DC; The World Bank; 2005. p. 69.
- Brini R, Jemmali H. Public spending efficiency, governance, political and economic policies: Is there a substantial causal relation? Evidence from selected MENA countries. International Journal of Economics and Financial Management 2016; 1(1): 24-34.
- Shen W, Yang SC, Zanna LF. Government spending effects in low-income countries. J Dev Eco 2018; 133: 201-19.
- Bloom D. The health and wealth of nations. Science 2000; 287(5456): 1207-9.
- World Health Organization. Health systems financing: The path to universal coverage: World health report 2010. Geneva, Switzerland: WHO; 2010.
- World Health Organization. World health statistics 2018: Monitoring health for the SDGs. Geneva, Switzerland: WHO; 2018.
- Berkley S, Bobadilla JL, Hecht R, Hill K, Jamison DT, Murray CJL, et al. World development report 1993: Investing in health. Washington, DC: World Bank Group; 1993.
- Farag M, Nandakumar AK, Wallack S, Hodgkin D, Gaumer G, Erbil C. Health expenditures, health outcomes and the role of good governance. Int J Health Care Finance Econ 2013; 13(1): 33-52.
- Retzlaff-Roberts D, Chang CF, Rubin RM. Technical efficiency in the use of health care resources: a comparison of OECD countries. Health Policy 2004; 69(1): 55-72.
- Hsu YC. The efficiency of government spending on health: Evidence from Europe and Central Asia. Soc Sci J 2013; 50(4): 665-73.
- Lavado RF, Cabanda EC. The efficiency of health and education expenditures in the Philippines. Cent Eur J Oper Res 2009; 17(3): 275-91.
- Varabyova Y, Muller JM. The efficiency of health care production in OECD countries: A systematic review and meta-analysis of cross-country comparisons. Health Policy 2016; 120(3): 252-63.
- Asandului L, Roman M, Fatulescu P. The efficiency of healthcare systems in Europe: A data envelopment analysis approach. Procedia Econ Financ 2014; 10: 261-8.
- Campos MS, Fernandez-Montes A, Gavilan JM, Velasco F. Public resource usage in health systems: a data envelopment analysis of the efficiency of health systems of autonomous communities in Spain. Public Health 2016; 138: 33-40.