Abstract
Using data from 276 general acute hospitals in the Pearl River Delta region of Guangdong Province from 2002 and 2004, we construct a preliminary metric of budget constraint softness. We find that, controlling for hospital size, ownership, and other factors, a Chinese hospital’s probability of receiving government financial support is inversely associated with the hospital’s previous net revenue, an association consistent with soft budget constraints.
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Eggleston, K., Shen, YC., Lu, M. et al. Soft budget constraints in China: Evidence from the Guangdong hospital industry. Int J Health Care Finance Econ 9, 233–242 (2009). https://doi.org/10.1007/s10754-009-9067-1
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DOI: https://doi.org/10.1007/s10754-009-9067-1