TRANSFERS OF SUS:

SPENDING SUBSTITUTION OR ADDITIONAL FUNDING?

Authors

  • Fernando Parmagnani IPE/USP
  • Fabiana Rocha Universidade de São Paulo

Keywords:

health transfers, fungibility, panel data, quantile regressions

Abstract

There is evidence that spending on a specific area could increase less than the amount transferred to that area, being the rest of the resources used to finance other public goods and services. This result became known as the fungibility effect of transfers. The purpose of this paper is to evaluate the impact of SUS transfers on health spending, seeking to verify if most of the resources transferred by the government are in fact being used in health actions. We employed classical
panel models, as well as fixed effect quantile regressions. The estimates are, in general, very similar and show that an R$1 increase in PAB fixo increases health spending in at least R$ 0,85. On the other hand, an R$1 increase in other transfers to health increases health spending in at least
R$ 0,88. The estimates are quite higher than the ones obtained for other economies. It seems, therefore, that the condicionalities imposed by the Ministry of Health were able to avoid a greater fungibility of the health grants.

Author Biographies

Fernando Parmagnani, IPE/USP

Mestre em Economia, IPE/USP

Fabiana Rocha, Universidade de São Paulo

Professora titular do Departamento de Economia da FEA/USP. Área Economia do Setor Público

Published

2021-12-17

How to Cite

Parmagnani, F., & Rocha, F. (2021). TRANSFERS OF SUS:: SPENDING SUBSTITUTION OR ADDITIONAL FUNDING?. Planejamento E Políticas Públicas, (48). Retrieved from //ipea.gov.br/ppp/index.php/PPP/article/view/605