Abstract:

This study aims to determine the crowding-out and crowding-in effect of public health expenditures on private sector health expenditures in Turkey. In the analyzes, VEC (Vector Error Correction) model was used. Analysis data covers the period between 1999q1-2018q4. The variables of the model are private sector health expenditures, public total health investments, 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 term, public total health investments have an crowding-out effect on private sector health expenditures, while public current health expenditures have an crowding-in effect on private sector health expenditures. While the crowding-out effect of total public health investments in the short run is greater than the crowding-in effect of public current health expenditures, it is found that in the long run, the crowding-in effect of public current health expenditures is greater than the crowding-out effect of public total health investments

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