Equity in the fiscal benefits associated with private health expenditures in Portugal: 2000 - 2010

A Work Project, presented as part of the requirements for the Award of a Masters Degree in Economics from the NOVA – School of Business and Economics

The objectives of this work project are to, a) provide an analysis on the extent of progressivity of the fiscal benefits associated with private health expenses in Portugal between 2000 and 2010, and b) assess the equity implications of a reduction of these fiscal benefits proposed by the Memorandum of Understanding. Using the methodology of concentration and Kakwani progressivity indices, the fiscal benefits was found to be pro-rich during this period with a progressivity index of -0.213 in 2010. A simulation of a reduction of these fiscal benefits estimated that these fiscal benefits will become pro-poor for the fiscal year 2013 with a progressivity index of 0.335.