A Simultaneous Equation Analysis of Public Health Financing and Outcomes in Jammu and Kashmir

This paper employs simultaneous equation modeling to analyze the political economy of public health in Jammu and Kashmir, examining the interrelationships between fiscal allocation, infrastructure development, and health outcomes. Using data from the Union Budget 2026-27, J&K Budget documents, NFHS-5, and administrative health statistics, we specify and estimate a three-equation system addressing: (1) the paradoxical relationship between fiscal dependency and superior health outcomes, (2) the curative-preventive imbalance in resource allocation, and (3) the emerging epidemiological transition. The results reveal that fiscal dependency enables health investment (elasticity 0.42, p