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How political ideology of government affects health system efficiency. Evidence from parliamentary democracies

What role does the government ideological composition play in health policy formation and outcomes? According to the conventional view, left-oriented governments are more likely to increase health spending. However, the impact of government ideology on health policy payoff is still a question for discussion. This paper examines how the ideological differences of ruling parties influence the efficiency of health systems. We use four stage data envelopment analysis (DEA), a non-parametric approach, to measure the health efficiency of 31 OECD countries for the period of 2001-2016. Based on the results from a panel tobit regression model, we show that while left-wing governments tend to increase public health spending, the efficiency of health systems is higher under ideologically balanced and/or right-wing governments.