The Effect of Business Cycles on Health Expenditure: A Story of Income Inequality in China

Frontiers in Public Health

Ming Zeng¹  Xiaohong Pu¹  Yaling Luo² 

[1] School of Public Administration, Sichuan University, Chengdu, China;null;

关键词: business cycles;    health expenditure;    income inequality;    financial crisis;    population health;   

DOI  :  10.3389/fpubh.2021.653480

来源: Frontiers

【 摘 要 】

Using the panel data of 31 regions in China from 2002 to 2018, this study aims to investigate the effect of business cycles on health expenditure from the role of income inequality. We find that health expenditure experiences a change from pro-cyclical to counter-cyclical with business cycles. Specifically, business cycles have a different influence on health expenditure before and after the financial crisis in 2008. Our findings also show that income inequality can moderate the impact of business cycles on health expenditure in China. More importantly, the role of income inequality in the above issue varies from different regions. We conclude that the government should try to take active steps to control health expenditure by decreasing income inequality.

【 授权许可】

CC BY