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|Title:||Health care expenditure and income in the OECD reconsidered: Evidence from panel data|
|Authors:||Baltagi, Badi H.|
|Publisher:||Dept. of Economics, University of Leicester|
|Abstract:||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.|
|Series/Report no.:||Papers in Economics|
|Appears in Collections:||Reports, Dept. of Economics|
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