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Systems GMM estimates of the health care spending and GDP relationship: a note

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  • Saten Kumar

Abstract

This paper utilizes the systems generalized method of moments (GMM) [Arellano and Bover ( 1995 ) J Econometrics 68:29–51; Blundell and Bond ( 1998 ) J Econometrics 87:115–143], and panel Granger causality [Hurlin and Venet ( 2001 ) Granger Causality tests in panel data models with fixed coefficients. Mime’o, University Paris IX], to investigate the health care spending and gross domestic product (GDP) relationship for organisation for economic co-operation and development countries over the period 1960–2007. The system GMM estimates confirm that the contribution of real GDP to health spending is significant and positive. The panel Granger causality tests imply that a bi-directional causality exists between health spending and GDP. To this end, policies aimed at raising health spending will eventually improve the well-being of the population in the long run. Copyright Springer-Verlag 2013

Suggested Citation

  • Saten Kumar, 2013. "Systems GMM estimates of the health care spending and GDP relationship: a note," The European Journal of Health Economics, Springer;Deutsche Gesellschaft für Gesundheitsökonomie (DGGÖ), vol. 14(3), pages 503-506, June.
    • Handle: RePEc:spr:eujhec:v:14:y:2013:i:3:p:503-506
    DOI: 10.1007/s10198-012-0394-7
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    Cited by:

    1. Ousmane Traoré, 2020. "Economic Growth and Human Capital Accumulation across Countries: Evidence from WAEMU Region," International Advances in Economic Research, Springer;International Atlantic Economic Society, vol. 26(2), pages 147-159, May.
    2. Di Matteo, Livio & Cantarero-Prieto, David, 2018. "The Determinants of Public Health Expenditures: Comparing Canada and Spain," MPRA Paper 87800, University Library of Munich, Germany.
    3. Odhiambo, Nicholas M, 2021. "Health expenditure and economic growth in Sub-Saharan Africa: An empirical investigation," Working Papers 27167, University of South Africa, Department of Economics.
    4. Viera Ivanková & Rastislav Kotulič & Jaroslav Gonos & Martin Rigelský, 2019. "Health Care Financing Systems and Their Effectiveness: An Empirical Study of OECD Countries," IJERPH, MDPI, vol. 16(20), pages 1-22, October.
    5. N.M. Odhiambo, 2021. "Health Expenditure and Economic Growth in Sub-Saharan Africa: An Empirical Investigation," Working Papers AESRI-2021-05, African Economic and Social Research Institute (AESRI), revised Jan 2021.
    6. Emre Atilgan & Dilek Kilic & Hasan Murat Ertugrul, 2017. "The dynamic relationship between health expenditure and economic growth: is the health-led growth hypothesis valid for Turkey?," The European Journal of Health Economics, Springer;Deutsche Gesellschaft für Gesundheitsökonomie (DGGÖ), vol. 18(5), pages 567-574, June.
    7. Nicholas M. Odhiambo, "undated". "Health Expenditure and Economic Growth in sub-Saharan Africa: An Empirical Investigation," Working Papers AESRIWP05, African Economic and Social Research Institute (AESRI).

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    More about this item

    Keywords

    Health care spending; Gross domestic product; Systems dynamic generalized method of moments; Panel Granger causality; C1; I1;
    All these keywords.

    JEL classification:

    • C1 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General
    • I1 - Health, Education, and Welfare - - Health

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