Econometric Analysis of Health Expenditure and Its Socioeconomic Inequality in Pakistan: A Microeconometric Approach

This paper looks at how much money or income of Pakistani families spend on health issues. Using data from PSLM for the years 2024–25. It investigates the components and variables that influence how much money families spend on different health diseases. The estimation results show that the cost of a family's catastrophic expenditure varies depending on a number of factors, including the nature of diseases, people living in different provinces, the location either urban or rural and the gender of the family heads. Health expenditure is also affected by an increase or decrease in income. Such factors drives an increase or decrease in household health spending. However, policy recommendations for health expenditure are influenced positively by ends in light of all factors. In addition, any findings may infer a wide range of health implications in Pakistan. Each of these factors play a specific role that how the government decides how much amount of money to spend in health sector. Regression analysis and the ordinary least squares (OLS) method were used to carry out the regression. When a model's dependent variable is quantitative, then this method and technique are applied in such situation. The policy and a solution to all the problems that can be explained by the variables and household health spending will be achieved through estimates and outcomes.