Investigation of the relationship between income distribution and health expenditures by regional analysis method

This study examines whether any change in income inequality, which is a global problem, causes any change in health expenditures. In the study, 26 regions (Level II regions) of Turkey are taken as the sample country. The period constraint of the study is set as 2014-2018. For the 2014-2018 period, the effect of income inequality on per capita health expenditures is analyzed with spatial panel data (SAR) techniques in the sample of Level II regions. According to the SAR test findings, as per capita income increases, per capita health expenditures also increase. Based on the elasticity value, a 1% change in per capita income leads to a 1.8% increase in per capita health expenditures. According to the SAR test findings, a 1% change in fertility rate leads to a 0.8% increase in health expenditures per capita. This result indicates that households regularly make health expenditures during pregnancy. The insignificant effect of education on per capita health expenditures is noteworthy. In addition, the most striking issue in the SAR test findings is the existence of a spatial effect. According to the findings, health expenditures per capita in one region increase health expenditures per capita in the neighboring region by 0.283%. This supports the existence of interaction between neighboring regions.