Evidence map›Paper›PMID 27655476›Full record

ArticleHealth economics review2016

Health expenditures spent for prevention, economic performance, and social welfare.

Fuhmei Wang, Jung-Der Wang, Yu-Xiu Huang

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Article in Health economics review, 2016. The graph could read no effect estimate from its abstract, so it casts no vote on the map. Cited by 6 papers.

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6citing papers in PubMed
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1 · What the graph read from it

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3 · Its place in the literature

Who cites it

6 citing papers in PubMed.

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4 · The record

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5 · Who and what money

Authors and funding

3 authors.

Fuhmei WangDepartment of Economics, Department of Public Health, and Research Center for Energy Technology and Strategy, National Cheng Kung University, Tainan, 701, Taiwan.
Jung-Der WangDepartment of Public Health, College of Medicine, National Cheng Kung University, Tainan, 701, Taiwan. jdwang121@gmail.com.
Yu-Xiu HuangDepartment of Economics, National Cheng Kung University, Tainan, 701, Taiwan.

Funding

No grant is acknowledged in the PubMed record.

6 · The paper itself

Abstract

backgroundCountries with limited resources in economic downturns often reduce government expenditures, of which spending on preventive healthcare with no apparent immediate health impact might be cut down first. This research aims to find the optimum share of preventive health expenditure to gross domestic product (GDP) and investigate the implications of preventive health services on economic performance and the population's wellbeing.

methodsWe develop the economic growth model to undertake health-economic analyses and parameterize for Taiwan setting. Based on the US experiences over the period from 1975 to 2013, this research further examines the model's predictions on the relationship between preventive health expenditure and economic performance.

resultsTheoretical analysis and numerical simulations show that an inverse U-shaped relationship exists between the proportion of GDP spent on prevention and social welfare, as well as between the proportion spent on prevention and economic growth. Empirical analysis shows an under-investment in prevention in Taiwan. The spending of preventive healthcare in Taiwan government was 0.0027 GDP in 2014, while the optimization levels for economic development and social welfare would be 0 · 0119 and 0 · 0203, respectively. There is a statistically significant nonlinear relationship between health expenditure on prevention and the estimated real impact of economic performance from US experiences. The welfare-maximizing proportion of preventive expenditure is usually greater than the proportion maximizing economic growth, indicating a conflict between economic growth and welfare after a marginal share.

conclusionOur findings indicate that it is worthwhile increasing investment on prevention up until an optimization level for economic development and social welfare. Such levels could also be estimated in other economies.

Indexed as

Economic growthHealth expenditures spent for preventionSocial welfare

Identifiers

PMID27655476
PMCPMC5031586

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Read under generation 80e0d062 · epoch 390. Bibliography from PubMed, PubMed Central and OpenAlex; grants from NIH RePORTER; trial links from ClinicalTrials.gov; estimates, votes and beliefs from the OpenQuestion graph.