The Inequality Measure And Equalization Study On Public Health Expenditure In China

It has a negative impact on the building a harmonious society that inequality of benefit from public health expenditures in urban and rural income groups will expand the gap of different income groups. For the problem, the government proposed in the seventeen National People’s Congress’s report that to strengthen the government’s responsibility and commitment, to improve the national health policy, to encourage social participation, to construct public health service system covering urban and rural residents, health care system, medical security and medicine supply system, to provide safe, effective, convenient and inexpensive health service for people." And the eighteen National People’s Congress’s report also stated clearly that social security covers all citizens, everyone is assured of basic health services, housing security system is basically formed and the society is harmonious and stable. With the attention of the government and introduction of policy documents, the government has increased public spending on health. However, it is turned over if increased expense was evenly assigned to different income groups in urban and rural areas. Whether public health spending has achieved the desired goal, policy’s effectiveness, also remains to be seen. This paper studied how public health expenditures was allocated in urban and rural income groups, analyzed reasons causing inequality and put forward averaging public health expenditures based on different benefit from public health expenditures in urban and rural income groups.This paper adopts the division of the China Statistical Yearbook in urban-rural income groups. And it is based on ELES, Ragnar Frisch equation, Maital utility function and the principle of Allen and McGill. Research thought in this paper could summarized:firstly, according to Liuch’s ELES, this paper obtains the data of price elasticity and income elasticity. After that substituting these data to the Ragnar Frisch equation,this paper obtains the parameter of Maital utility function.Then according to the principle of Allen and McGill,the data of public health expenditure is allocated in all income groups to analyse the benefit incidence of public health expenditure. At last,this paper uses theil index and Atkinsom Index to analyse the equaliztion of different income groups.Simultaneously, some effect factors are empirically tested.This article is divided into five parts, the first is an introduction, basically argued that the research background, significance and relevance of literature review. The second is theoretical framework. It discusses the decisions and implementation mechanisms of the public health expenditure.The third part is the theory of public spending. The fourth part estimates the benefits of publichealth spending in urban and rural hierarchy, and calculates the inequality index. The last part analyzes the causes that the public health expenditure is not equal and gives the relevant policy recommendations.