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| China went a tough way to undertake the health reform, which was featured as fiscal decentralization. To capture the health effects of fiscal decentralization, which are analyzed in two dimensions: health status and health equality, this paper first sets a theoretical model. And theoretical proposition highlights that the effect of fiscal decentralization on health outcomes meets a trade-off between health status and health equality. Then provincial panel data sets in 31 provinces from 2002 to 2006 are used, only to find that fiscal decentralization is detrimental to health status but good for health equality. However, health decentralization, a direct indicator for fiscal decentralization in health sector, is good for health status but detrimental to health equality. |
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| Keywords:fiscal decentralization;health level;health equality |
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