Incidence Of Subsidy Research Articles

Health financing strategies to reduce out-of-pocket burden in India: a comparative study of three states

BackgroundTo achieve the Sustainable Development Goals, Indian States have implemented different strategies to arrest high out-of-pocket expenditure (OOPE) and to increase equity into healthcare system. Tamil Nadu (TN) and Rajasthan have implemented free medicine scheme in all public hospitals and West Bengal (WB) has devised Fair Price Medicine Shop (FPMS) scheme, a public-private-partnership model in the state. In this background, the objectives of the paper are to -Study the utilization pattern of public in-patient care facilities for the states,Examine the effectiveness of the strategies adopted by the states to arrest high OOPE andAnalyze the extent of equity in public in-patient care services in the states.MethodsNational Sample Survey (71st and 60th round) data, Detailed Demand for Grants of the state governments and the National Rural/Urban Health Mission data have been used for the study. Exploratory data analysis and benefit incidence analysis have been applied to estimate the utilization, OOPE and extend of equity in the states.ResultsThe results show that overall utilization of public facilities in TN and Rajasthan has increased substantially; whereas, utilization of public facility has decreased in WB even among the poorest. In addition, OOPE for both medical and medicine is the highest in WB among three states for public sector hospitalizations. Surprisingly, OOPE on medicine is the highest for the poorest class of WB. Analysis showed that the mismatch between actual need and FPMS drug-list has led to high OOPE in the state. Overall, benefit incidence of public subsidy is the highest among the poorest class in all the states. However, geographical sector-wise inequity in public subsidy distribution persists in the states. Analysis of cost of inpatient care shows that TN provides the maximum subsidy for hospitalization and WB provides the minimum. An inverse relationship between utilization of inpatient care and public subsidy has been observed from the analysis.ConclusionIn conclusion we could say that TN & Rajasthan have successfully implemented their health financing strategies to reduce the health expenditure burden. However, policy-level changes are required to improve the situation in WB.

Fairness Norms and the Incidence of Environmental Subsidy

Although fairness concerns are frequently discussed in the real world environmental politics, their effects are relatively neglected in the environmental economics literature. Using a survey method, this paper attempts to reveal how fairness norms affect the incidence of subsidy both in the short-run and long-run. The results indicate that statutory incidence (legal right to receive subsidy) affects people’s fairness norms on who should receive subsidy. In particular it is considered unfair for a firm to receive a part of the subsidy when it is legally granted to the consumer side. If firms avoid behaviors that are considered unfair, the tax and subsidy equivalence theorem may not hold under this situation. The survey results also reveal that fairness norms affect the incidence of subsidy in the long-run, in a sense that the allocation of gains that are generated due to subsidy is affected. People find it fair if allocation is made in proportion to firms’ own effort. Therefore, if an increase in profit is achieved by activities directly supported by subsidy, people find it less justifiable for firms to keep all the gains by themselves and thus firms may be forced to share the gains with consumers.

The Incidence of the Mortgage Interest Deduction: Evidence from the Market for Home Purchase Loans

This article examines the incidence of the largest housing-related subsidy in the federal budget, the home mortgage interest deduction (MID). The author uses the difference in interest rates for loans made around the MID limit to identify the incidence of the subsidy. Using data on individual mortgages originated in 2004, the author estimates that for every $1,000 borrowed without the MID, the interest rate on the entire loan decreases by between 3.3 and 4.4 percent. Results suggest that lenders capture between 9 and 17 percent of the subsidy created by the home MID through higher mortgage interest rates.

Housing careers, asset accumulation and subsidies to owner occupiers — A microsimulation

Owner occupiers in the UK housing market receive considerable central government subsidies, namely through provision of tax relief upon mortgage interest, through exemption of private house sales from capital gains tax and through tax advantages relative to those who pay rent out of their net incomes. This paper sets out a framework for assessing the incidence of these subsidies upon different groups of owner occupiers over time, and suggests how regional fluctuations in house price inflation, size of house purchase loan and residential mobility behaviour affect the incidence of exchequer subsidy.

The Scale and Distribution of Financial Subsidies to Owner-Occupier Households: A Comparison of Estimates Derived from Building Society Records with Those of the Joseph Rowntree Memorial Trust Random Sample Survey

Estimates of financial subsidies to individual owner occupiers, by way of mortgage interest tax relief and non taxation of imputed rent, are shown to vary, depending upon the data source or sampling frame used. Subsidy estimates based upon building society data are significantly higher than those derived from a random sample of owner occupier households. While the incidence of subsidy increases with income and house prices, the level of MlRAS subsidy has fallen over time: households in 1988 only recieved 65070 of the 1985 subsidy in real terms.