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Int J Health Care Finance Econ. 2009 Jun;9(2):233-42. doi: 10.1007/s10754-009-9067-1. Epub 2009 Apr 28.

Soft budget constraints in China: evidence from the Guangdong hospital industry.

Author information

1
Walter H. Shorenstein Asia-Pacific Research Center, Stanford University, 616 Serra St., Encina Hall E311, Stanford, CA 94305-6055, USA. karene@stanford.edu

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.

PMID:
19399608
DOI:
10.1007/s10754-009-9067-1
[Indexed for MEDLINE]

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