Social Welfare Objectives and Distribution Weights in Public Health Planning in Turkey

Abstract

In order to estimate distribution weights for project appraisal, public investment decisions can be analysed in terms of revealed preferences underlying a social welfare function. Literature contributions show lack of consensus relative to theoretical framework, estimation techniques and interpretation of parameter estimates. Moreover, a social welfare objective, or a specific target, may be pursued to the detriment of another. Based on a multiobjective social welfare function suited to public health planning, this analysis applies censored regression models to new constructions of public hospitals in Turkey. Cross-province results highlight a number of trade-offs and inconsistencies, with some health care targets receiving priority over others in terms of both efficiency and distribution objectives. In five out of nine targets (expressed by ten proxy variables) expected signs are not matched by results.