Scandinavian Working Papers in Business Administration

Working Papers,
Örebro University, School of Business

No 2008:8: What Determines Local Expenditures on Mental Health Care in Sweden Really?

Linda Andersson () and Anna Henriksen ()
Additional contact information
Linda Andersson: Department of Business, Economics, Statistics and Informatics, Postal: Örebro University, Swedish Business School, SE - 701 82 ÖREBRO, Sweden
Anna Henriksen: Department of Business, Economics, Statistics and Informatics, Postal: Örebro University, Swedish Business School, SE - 701 82 ÖREBRO, Sweden

Abstract: The objective of this paper is to analyze the determinants of local expenditures on mental health care in Sweden. We use a unique dataset that identifies the localities’ expenditures explicitly directed towards mental health care. Based on these data we find that there is increasing returns to scale in the provision of local mental health services in terms of population. However, it appears as if local policy variables, local earnings potential (economic opportunities), geographical area or other indicators that have been put forward in the debate, cannot explain the large variation in local expenditures on mental health care in

Keywords: local expenditures; mental health care

JEL-codes: H72; I18; I38

18 pages, June 25, 2008

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