Fiscal incidence analysis: Healthcare

Stellenbosch Working Paper Series No. WP12/2009
 
Publication date: 2009
 
Author(s):
[protected email address] (Consulting Health Economist)
 
Abstract:

This study makes particular use of concentration curves to isolate distributional effects and information graphically. The main source for data is the GHS2006. However, the GHS2006 does not provide adequate income date for the incidence analysis. A distribution of household per capita income was consequently developed by the broader project combining income distribution information from the Income and Expenditure Survey of 2006 (Statistics South Africa) with asset information from the GHS2006. Concentration curves are used throughout to demonstrate possible distributional effects within the health system. It is found that the medical scheme population typically makes use of private health providers, while the non-medical scheme population predominantly uses the public provider system. The findings with regard to the non-medical scheme population indicate that certain conditions are biased toward low-income groups while others other biased higher-income groups. Within the former group are Tuberculosis (TB), Diarrhoea, and AIDS. However, AIDS is not as pronounced in the lowest income groups as is the case with TB and HT. Trauma appears to closely follow the equality line, while chronic conditions associated with lifestyle show a slight bias toward higher income groups. Satisfaction with services also differs according to income groups in which individuals are found.

 
JEL Classification:

H5, I1

Keywords:

National government expenditure, Health

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