Public Policy and Administration (Oct 2020)

Public expenditures as a factor of goods availability, provided by healthcare: evidence from Ukraine

  • Denys Verba,
  • Olena Tkachenko,
  • Larysa Kozlovska

Journal volume & issue
Vol. 19, no. 3


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The article contains the testing of analytical techniques designed to clarify the connection between resources provision of commercial and public sectors of healthcare – on one turn and the amount of goods consumption, produced by healthcare by households – on other. The specify kind of production function was used, adopted for displaying the connection “inputs - outputs”, where the “inputs” unites not different resources, but costs occurred in different sectors of healthcare (in particular – in public and commercial sectors). The research results have confirmed that resource provision of Ukrainian public sector of healthcare decreases amidst the growing load on the sector’s productive capacity. Also was confirmed hypothesis about the significant impact of public sector resource provision on the price of goods, provided by the commercial sector of Ukrainian healthcare. In general, was highlighted that lack of resources provision of the widely available sector of healthcare might lead to circumstances, where expanding the consumption of goods supplied by the commercial sector of the healthcare is not due to, but contrary to the dynamics of incomes, as a forced form of adaptation to decline the financing of the public sector of the healthcare. Such results would contribute to the better understanding connection between indicators of public and commercial sectors of healthcare development (their resources provision, physical outputs and valued outcomes) on one turn and level of population well-being – on other. That, in turn, is required for developing the social sphere reform theoretical background for the health care services by income, as it was recorded in many studies in the developed countries.