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Hardening subnational budget constraints via administrative subordination: The Italian experience of recovery plans in regional health services
Author(s) -
Bordig Massimo,
Coretti Silvia,
Piacenza Massimiliano,
Turati Gilberto
Publication year - 2020
Publication title -
health economics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.55
H-Index - 109
eISSN - 1099-1050
pISSN - 1057-9230
DOI - 10.1002/hec.4138
Subject(s) - balanced budget , subordination (linguistics) , business , health care , public economics , health services , government (linguistics) , central government , economics , local government , economic growth , public administration , political science , medicine , environmental health , politics , population , philosophy , linguistics , law
Since 2007, Italian regions running large deficits underwent recovery plans ( Piani di Rientro ) imposed by the central government. The goal was twofold: regions were asked (i) to restore a balanced budget and (ii) to continue supply the set of services defined by the constitution. We investigate whether recovery plans have reached their objectives. Our evidence suggests that recovery plans have proved to be an effective mechanism to eliminate subnational governments deficits. We also do not find any significant effects on health care utilization and on citizens' health. Overall, spending efficiency has likely improved.