The Research Of Health Human Capital, Public Financial Expenditure Of Health And The Spillover Effect

With the rapid growth of China’s economy,there are more and more residents begin to do some human capital investment.However,it’s unbalance of the development between different regions.For the reason,new technology such as Internet,big data make it possible to solve the asymmetry of medical information,which leads to residents go to another region for better medical service.That is the spillover Effect.The public health is important for the society.According to the data,the gap of medical level has become more wide,which make the cross-region health human capital investment common.On the one hand,the crowded of medical resource decline the utility of developed region;on the other hand,is it useful for cross-region investment to balance the gap of health human capital.Based on the GE theory,this research builds a model to describe the health human capital and the public financial health expenditure between two regions with different level of development.Focus on the exogenous shock,the model solves changes of the optimum solutions.Then,we use the location entropy theory and gravitation theory to calculate effect cor-matrix of the health human capital of China’s 31 provinces.At last,we use the matrix to fix the spatial econometrics model and prove the conclusion of theory model.First,the public financial expenditure of health could be more effective through the spillover effect and benefit the health human capital of local residents.Second,the demands of health care appear the Veblen Effect.Third,the clinic data shows that there is growth trend for the cross-region health human capital investment.Fourth,the effect of health human capital conversion is the core reason to form the cross-region health human capital investment.Last,the spillover effect benefits the balance between regions on the health human capital,which should be advocated for the stable growth of economy.