What question did this study set out to answer?

This research aims to explore how macroeconomic fluctuations affect healthcare funding decisions by local governments in Brazil.

Macroeconomic fluctuations and the prioritisation of healthcare funding by local governments: Longitudinal evidence from 5,461 Brazilian municipalities

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Longitudinal analysis reveals municipal healthcare funding priorities shift during economic instability, impacting service delivery.

This research aims to explore how macroeconomic fluctuations affect healthcare funding decisions by local governments in Brazil.
Analyzed longitudinal data from 5,461 Brazilian municipalities from 2004 to 2017.
Used fixed-effect panel regressions to assess the impact of GDP changes on healthcare spending.
Examined variations in healthcare expenditures during economic downturns.
A 1% increase in GDP per capita correlates with a 0.06% rise in total municipal expenditures.
Healthcare and sanitation spending increases by 0.12% for the same GDP per capita increase.
During recessions, municipalities cut health expenditures, particularly for capital investments.

Arruda et al. (2026) studied this question.

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