Mental health expenditure in England: a spatial panel approach
Please note: this is a legacy publication from CPEC (formely PSSRU at LSE).Journal of Health Economics 26 4 842-864
Available online: 12 January 2007
Abstract
We empirically investigate the determinants of local authority mental health expenditure in England. We adopt a reduced form demand and supply model, extended to incorporate possible interaction among authorities, as well as unobserved heterogeneity. The model is estimated using an annual panel dataset that allows us to explore both time-series and cross-municipality variation in mental health expenditure. Results are consistent with some degree of interdependence between neighbouring municipalities in spending decisions. This first attempt to apply spatial panels in investigating health expenditure offers insights and raises new questions.
We empirically investigate the determinants of local authority mental health expenditure in England. We adopt a reduced form demand and supply model, extended to incorporate possible interaction among authorities, as well as unobserved heterogeneity. The model is estimated using an annual panel dataset that allows us to explore both time-series and cross-municipality variation in mental health expenditure. Results are consistent with some degree of interdependence between neighbouring municipalities in spending decisions. This first attempt to apply spatial panels in investigating health expenditure offers insights and raises new questions.