This paper reconsiders the long-run economic relationship between health care expenditure and income using a panel of 20 OECD countries observed over the period 1971-2004. In particular, the paper studies the non-stationarity and cointegration properties between health care spending and income. This is done in a panel data context controlling for both cross-section dependence and unobserved heterogeneity. Cross-section dependence is modelled through a common factor model and through spatial dependence. Heterogeneity is handled through fixed effects in a panel homogeneous model and through a panel heterogeneous model. Our findings suggest that health care is a necessity rather than a luxury, with an elasticity much smaller than that estimated in previous studies. © 2010 Elsevier B.V.
|Data di pubblicazione:||2010|
|Titolo:||Health Care Expenditure and Income in the OECD Reconsidered: Evidence from Panel Data|
|Digital Object Identifier (DOI):||http://dx.doi.org/10.1016/j.econmod.2009.12.001|
|Appare nelle tipologie:||2.1 Articolo su rivista |
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