How household healthcare expenditures redistribute disposable income? An analysis using Bangladesh household income and expenditure survey, 2010.

Azaher Molla 1, Chunhuei Chi 2

Abstract


Essential healthcare is a civil right. Payments toward healthcare is a moral compulsion, and no less strong than legal compulsion like income tax. Healthcare payments can redistribute disposable income. Redistribution may be vertical (from rich to poor or opposite) and horizontal (from men to women or from households without children to households with children). Health planners are interested in degrees to which redistribution occurs. In this paper, we aim to analyze how well different forms of healthcare payments in Bangladesh redistribute disposable income. Our data comes from Bangladesh Household Income and Expenditure Survey, 2010. Using the methods developed by Aronson et al. (1994), we assessed average rate effect, progressivity, horizontal equity and re-ranking. The results suggest that Bangladesh health systems finance has a pro-rich redistribution of disposable income. Post-payment disposable income decreases for the poor and increases for the rich. As a result, the poor are in a shortfall in disposable income, which ultimately get them to impoverishment, and or push them to deeper poverty. On the contrary, the rich become richer due to increase in post-payment disposable income. This leads to an increase in inequality.


Keywords


Distribution of Disposable Income; Healthcare Payments; Bangladesh; Health Systems Finance; Inequity

Full Text:

PDF

References


Aronson JR, Johnson P, & Lambert PJ. Redistributive Effect and Unequal Tax Treatment. Economic Journal 1994; 104(423): 262-70.

Bangladesh Bureau of Statistics, 2011. Report of the Household Income and Expenditure

Survey, 2010. Ministry of Planning. Government of the People’s Republic of Bangladesh.

Dhaka, Bangladesh.

Bangladesh National Health Account (BNHA) 2007-2012. Health Economics Unit (HEU), Ministry of Health and Family Welfare. Government of the People’s Republic of Bangladesh. Dhaka.

Adams AM, Ahmed T, El Arifeen S, et al. Innovation for universal health coverage in Bangladesh: a call to action. The Lancet. 2013 Dec 21; 382(9910):2104-11.

Kakwani NC. Measurement of tax progressivity: an international comparison. The Economic Journal. 1977 Mar 1; 87(345):71-80.

Lambert PJ. The distribution and redistribution of income. In Current issues in public sector economics 1992 (pp. 200-226). Palgrave, London.

Majumder MA. World Health Statistics 2011: How does Bangladesh compare with other South-East Asian countries? South East Asia Journal of Public Health. 2013 Jan 8;1(1):4-11.




DOI: http://dx.doi.org/10.24294/fsj.v1i4.803

Refbacks

  • There are currently no refbacks.


Creative Commons License
This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.

Creative Commons License

This site is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.