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.