Abstract. This paper presents an analysis of some issues related to the corruption and performance of services in the public health. Reform of public health is a complex and lengthy process, which involves different types of institutions and individuals. In this paper, starting from a set of hypotheses, we define a simultaneous equations model to analyze some important issues related to the progress of the reform process in the public health system. This model contains equations regarding the quality of reform in the public health system, the role played by different factors in increasing of the transparency of decisions in the public health system, estimations of the influence of some factors from the public health system in increasing the health education of the population, factors related to corruption and nonacademic behavior in the public health system contributing to the implementation of the reform process in the system and improvement of the quality of the medical act. Parameters estimates have been done through procedures implemented in EViews. Applying Hausman test we compare the results for cases in which the parameters are estimated by the least squares method and the two stages least squares method.

Keywords: simultaneous equations models; public health system; reform.