Can bigger health budgets cushion pandemics? An empirical test of COVID-19 deaths across the world

Vadlamannati, Krishna Chaitanya, Cooray, Arusha, and de Soysa, Indra (2023) Can bigger health budgets cushion pandemics? An empirical test of COVID-19 deaths across the world. Journal of Public Policy, 43 (1). pp. 33-58.

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How has public healthcare spending prepared countries for tackling the COVID-19 pandemic? Arguably, spending is the primary policy tool of governments for providing effective health. We argue that the effectiveness of spending for reducing COVID deaths is conditional on the existence of healthcare equity and lower political corruption because the health sector is particularly susceptible to political spending. Our results, obtained using ordinary least squares and two-stage least squares estimations, suggest that higher spending targeted at reducing inequitable access to health has reduced COVID deaths. Consistent with the findings of others, our results indirectly suggest that health spending is necessary, but not sufficient unless accompanied by good governance and equitable access. Equitable health systems ease the effects of COVID presumably because they allow states to reach and treat people more effectively. Spending aimed at increasing health system capacity by increasing access thus seems a sound strategy for fighting the spread of disease, ultimately benefiting us all.

Item ID: 76703
Item Type: Article (Research - C1)
ISSN: 1469-7815
Copyright Information: © The Author(s), 2022. Published by Cambridge University Press. This is an Open Access article, distributed under the terms of the Creative Commons Attribution licence (, which permits unrestricted re-use, distribution and reproduction, provided the original article is properly cited.
Research Data:
Date Deposited: 09 Nov 2022 01:38
FoR Codes: 38 ECONOMICS > 3801 Applied economics > 380114 Public economics - publicly provided goods @ 50%
38 ECONOMICS > 3801 Applied economics > 380108 Health economics @ 50%
SEO Codes: 15 ECONOMIC FRAMEWORK > 1502 Macroeconomics > 150205 Fiscal policy @ 50%
15 ECONOMIC FRAMEWORK > 1502 Macroeconomics > 150299 Macroeconomics not elsewhere classified @ 50%
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