Evidence on the relationship between public medical resources and health indicators

This paper estimates the impact of public medical resources on morbidity indicators. Since health status also depends on a number of factors that are not directly related to health itself, the demographic, socioeconomic and life-style characteristics of those individuals who are included in the sample are examined. The estimations are carried out using probability regressions and two-part models in which it is assumed that health resources are exogenous. The results indicate that increases in public health expenditure improve both psychological and physical health.