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Granger causality between total expenditure on health and GDP in OECD: Evidence from the Toda–Yamamoto approach

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  • Amiri, Arshia
  • Ventelou, Bruno

Abstract

In this paper, a modified version of the Granger causality test proposed by Toda and Yamamoto is used to investigate causality between GDP and healthcare expenditure in OECD countries. The findings indicate that bidirectional Granger causality is predominant.

Suggested Citation

  • Amiri, Arshia & Ventelou, Bruno, 2012. "Granger causality between total expenditure on health and GDP in OECD: Evidence from the Toda–Yamamoto approach," Economics Letters, Elsevier, vol. 116(3), pages 541-544.
    • Handle: RePEc:eee:ecolet:v:116:y:2012:i:3:p:541-544
    DOI: 10.1016/j.econlet.2012.04.040
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    More about this item

    Keywords

    Healthcare expenditure; GDP; Toda–Yamamoto causality; OECD;
    All these keywords.

    JEL classification:

    • C12 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Hypothesis Testing: General
    • C32 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models; Diffusion Processes; State Space Models
    • I10 - Health, Education, and Welfare - - Health - - - General
    • I18 - Health, Education, and Welfare - - Health - - - Government Policy; Regulation; Public Health

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