The crowding out and crowding in effect of public health expenditures on private sector health expenditures

This study aims to determine the crowding out and crowding in effect of public health expenditures on private sector health expenditures. In order to achieve this aim, the thesis is divided into three parts. Examined health expenditure in the first section, the second section, information on the crowding out and crowding in effect concerning health expenditures is given, in the third part, the effect of crowding out and crowding in of health expenditures in Turkey described with the help of table and graphics. Then, econometric analyzes were carried out in line with the time series data regarding the variables determined in line with the literature. In the analysis, VECM (Vector Error Correction) model based on VAR (Vector Autoregressive) model was used. Analysis data covers the period between 1999q1-2018q4. The variables of the model are private sector health expenditures, public health investment expenditures, public current health expenditures, gross domestic product, consumer price index and interest rate. According to the analysis results of the variables, it is concluded that, in the short and long run, public total health investments have crowding out effect on private sector health expenditures, while public current health expenditures have a crowding in effect on private sector health expenditures. In the short run, the crowding out effect of public health investment expenditures is greater than the crowding in effect of public current health expenditures, whereas in the long run, the crowding in effect of public current health expenditures is greater than the crowding out effect of public health investment expenditures.