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(DP 2012-01) The effects of term limits and yardstick competition on local government provision of health insurance and other public services: The Philippine case

UPSE Discussion Papers

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Title (DP 2012-01) The effects of term limits and yardstick competition on local government provision of health insurance and other public services: The Philippine case
 
Creator Capuno, Joseph J.
Quimbo, Stella A.
Kraft, Aleli D.
Tan, Jr., Carlos Antonio R.
Fabella, Vigile Marie B.
 
Subject Local governments; term limits; yardstick competition; health insurance; poor; Philippines
 
Description We investigate the effects of two accountability measures on the decisions of the local governments under decentralization. Using a panel of Philippine municipalities and cities in three election years, we find that term limits have negative but weak effects on the provision of health insurance coverage to poor families and on expenditures on local services. However, yardstick competition (i.e., more subsidized insurance coverage for the poor in neighboring local governments) induces them to cover more poor families, but also reduce other public expenditures. To respond to critiques of health decentralization, our results suggest that the objectives of local politicians can be aligned with those of the health sector. The key insight is the incumbent may extend health insurance coverage like a redistributive transfer to pursue reelection objectives. However, the resulting trade off between subsidized insurance coverage and other public services must be considered.
 
Publisher UPSE Discussion Papers
 
Contributor —
 
Date 2012-02-16
 
Type info:eu-repo/semantics/article
info:eu-repo/semantics/publishedVersion
Peer-reviewed Article
 
Format application/pdf
 
Identifier http://www.econ.upd.edu.ph/dp/index.php/dp/article/view/684
 
Source UPSE Discussion Papers; 2012
 
Language eng
 
Relation http://www.econ.upd.edu.ph/dp/index.php/dp/article/view/684/150