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Crowding-Out or Crowding-In: Government Health Investment and Household Consumption

This paper explores the relationship of government health investment and household consumption by applying a panel fixed effects model and Sobel-Goodman mediation tests to inland Chinese provinces. The empirical results highlight that government health investment has a crowding-in effect and can thu...

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Autores principales: Cheng, Hao, Zhi, Yu-Peng, Deng, Zi-Wei, Gao, Qing, Jiang, Rui
Formato: Online Artículo Texto
Lenguaje:English
Publicado: Frontiers Media S.A. 2021
Materias:
Acceso en línea:https://www.ncbi.nlm.nih.gov/pmc/articles/PMC8226022/
https://www.ncbi.nlm.nih.gov/pubmed/34178935
http://dx.doi.org/10.3389/fpubh.2021.706937
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author Cheng, Hao
Zhi, Yu-Peng
Deng, Zi-Wei
Gao, Qing
Jiang, Rui
author_facet Cheng, Hao
Zhi, Yu-Peng
Deng, Zi-Wei
Gao, Qing
Jiang, Rui
author_sort Cheng, Hao
collection PubMed
description This paper explores the relationship of government health investment and household consumption by applying a panel fixed effects model and Sobel-Goodman mediation tests to inland Chinese provinces. The empirical results highlight that government health investment has a crowding-in effect and can thus promote household consumption. Furthermore, the promotion effect on non-medical health consumption is greater than that on medical health consumption. The promotion effect of government health investment on rural household consumption is higher than that on urban household consumption, and the promotion effect on household consumption for northern provinces is higher than that in southern provinces. This heterogeneous effect is closely related to the difference between urban and rural development; and the economic levels of the northern and South regions. The mediation tests found that government health investment mainly promotes regional economic growth, and then increases household consumption. In the economic and social development process, the government should implement more effective medical and health care measures to increase social medical and health investment to improve the consumption level of households.
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spelling pubmed-82260222021-06-26 Crowding-Out or Crowding-In: Government Health Investment and Household Consumption Cheng, Hao Zhi, Yu-Peng Deng, Zi-Wei Gao, Qing Jiang, Rui Front Public Health Public Health This paper explores the relationship of government health investment and household consumption by applying a panel fixed effects model and Sobel-Goodman mediation tests to inland Chinese provinces. The empirical results highlight that government health investment has a crowding-in effect and can thus promote household consumption. Furthermore, the promotion effect on non-medical health consumption is greater than that on medical health consumption. The promotion effect of government health investment on rural household consumption is higher than that on urban household consumption, and the promotion effect on household consumption for northern provinces is higher than that in southern provinces. This heterogeneous effect is closely related to the difference between urban and rural development; and the economic levels of the northern and South regions. The mediation tests found that government health investment mainly promotes regional economic growth, and then increases household consumption. In the economic and social development process, the government should implement more effective medical and health care measures to increase social medical and health investment to improve the consumption level of households. Frontiers Media S.A. 2021-06-11 /pmc/articles/PMC8226022/ /pubmed/34178935 http://dx.doi.org/10.3389/fpubh.2021.706937 Text en Copyright © 2021 Cheng, Zhi, Deng, Gao and Jiang. https://creativecommons.org/licenses/by/4.0/This is an open-access article distributed under the terms of the Creative Commons Attribution License (CC BY). The use, distribution or reproduction in other forums is permitted, provided the original author(s) and the copyright owner(s) are credited and that the original publication in this journal is cited, in accordance with accepted academic practice. No use, distribution or reproduction is permitted which does not comply with these terms.
spellingShingle Public Health
Cheng, Hao
Zhi, Yu-Peng
Deng, Zi-Wei
Gao, Qing
Jiang, Rui
Crowding-Out or Crowding-In: Government Health Investment and Household Consumption
title Crowding-Out or Crowding-In: Government Health Investment and Household Consumption
title_full Crowding-Out or Crowding-In: Government Health Investment and Household Consumption
title_fullStr Crowding-Out or Crowding-In: Government Health Investment and Household Consumption
title_full_unstemmed Crowding-Out or Crowding-In: Government Health Investment and Household Consumption
title_short Crowding-Out or Crowding-In: Government Health Investment and Household Consumption
title_sort crowding-out or crowding-in: government health investment and household consumption
topic Public Health
url https://www.ncbi.nlm.nih.gov/pmc/articles/PMC8226022/
https://www.ncbi.nlm.nih.gov/pubmed/34178935
http://dx.doi.org/10.3389/fpubh.2021.706937
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