Impacts of Universal Health Coverage: Financing, Income Inequality, and Social Welfare

by Xianguo Huang and Naoyuki Yoshino
Asian Development Bank Institute (ADBI) Working Paper Series No. 617, November 2016

38 pp. 1.6 MB

This paper studies the impact of tax-financed universal health coverage schemes on macroeconomic aspects of labour supply, asset holding, inequality, and welfare, while taking into account features common to developing economies, such as informal employment and tax avoidance, by constructing a dynamic stochastic general equilibrium model with heterogeneous agents. Universal health coverage, financed by labour income tax revenue, could reduce inequality due to its large redistributive role.

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