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GTAP Resource #5542

"The macroeconomic implications of public healthcare financing: a computable general equilibrium analysis of Uganda"
by Kabajulizi, Judith, Marcus Keogh-Brown and Richard Smith

Rapid progress to universal healthcare coverage is dependent on adequate resourcing. In low-income-countries, government health expenditure is below the WHO recommended level for universal health coverage and these countries rely heavily on external resources for healthcare financing which is unsustainable. This paper evaluates three options for creating greater domestic fiscal space to support universal health coverage in a more sustainable manner: prioritising the health sector by increasing the health budget share (given a fixed government budget), an earmarked tax for health and increasing foreign aid for health. We use a recursive dynamic computable general equilibrium model to capture the lagged health and healthcare effects. We find that increasing the health share in the general government budget generates higher growth rates in GDP, investment and private consumption, and accelerates poverty reduction in Uganda, leading to increased health, strengthening the case for policy-makers in low- and middle-income countries to frontload investment in healthcare.

Key words: Healthcare financing; Macroeconomics; Economic growth; CGE; Uganda

Resource Details (Export Citation) GTAP Keywords
Category: 2018 Conference Paper
Status: Published
By/In: Presented at the 21st Annual Conference on Global Economic Analysis, Cartagena, Colombia
Date: 2018
Created: Kabajulizi, J. (4/14/2018)
Updated: Kabajulizi, J. (4/14/2018)
Visits: 1,132
- Dynamic modeling
- Economic growth
- Health
- Africa (East)

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