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Convergence of per capita health care expenditures in OECD Countries

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  • Aslan, Alper

Abstract

In this article it is investigated the convergence of health care expenditures per capita in OECD during the 1970–2005 period by applying Lima and Resende (2007) persistence methodology. Departures across countries were evaluated in terms of panel data unit root tests advanced by Im et al. (2003). The evidence illustrated that one cannot reject the null hypothesis of unit root for the (log) of the ratio of health care expenditures of each country relative to a reference unit except average of per capita health expenditures The results, therefore, favour a very strong form of persistence for OECD expenditures inequality.

Suggested Citation

  • Aslan, Alper, 2008. "Convergence of per capita health care expenditures in OECD Countries," MPRA Paper 10592, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:10592
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    References listed on IDEAS

    as
    1. Marcos Lima & Marcelo Resende, 2007. "Convergence of per capita GDP in Brazil: an empirical note," Applied Economics Letters, Taylor & Francis Journals, vol. 14(5), pages 333-335.
    2. Anindya Banerjee, 1999. "Panel Data Unit Roots and Cointegration: An Overview," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 61(S1), pages 607-629, November.
    3. Im, Kyung So & Pesaran, M. Hashem & Shin, Yongcheol, 2003. "Testing for unit roots in heterogeneous panels," Journal of Econometrics, Elsevier, vol. 115(1), pages 53-74, July.
    4. Fleissig, Adrian R. & Strauss, Jack, 2000. "Panel unit root tests of purchasing power parity for price indices," Journal of International Money and Finance, Elsevier, vol. 19(4), pages 489-506, August.
    5. Maddala, G S & Wu, Shaowen, 1999. "A Comparative Study of Unit Root Tests with Panel Data and a New Simple Test," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 61(0), pages 631-652, Special I.
    6. Quah, Danny, 1994. "Exploiting cross-section variation for unit root inference in dynamic data," Economics Letters, Elsevier, vol. 44(1-2), pages 9-19.
    7. Marcelo Resende, 2004. "Gibrat's Law and the Growth of Cities in Brazil: A Panel Data Investigation," Urban Studies, Urban Studies Journal Limited, vol. 41(8), pages 1537-1549, July.
    8. Fleissig, Adrian & Strauss, Jack, 2001. "Panel Unit-Root Tests of OECD Stochastic Convergence," Review of International Economics, Wiley Blackwell, vol. 9(1), pages 153-162, February.
    9. Francis X. Diebold & Marc Nerlove, 1988. "Unit roots in economic time series: a selective survey," Finance and Economics Discussion Series 49, Board of Governors of the Federal Reserve System (U.S.).
    10. J. Holmes, Mark, 2002. "Convergence in International Output: Evidence from Panel Data Unit Root Tests," Journal of Economic Integration, Center for Economic Integration, Sejong University, vol. 17, pages 826-838.
    11. Lopez, Claude & Murray, Christian J & Papell, David H, 2005. "State of the Art Unit Root Tests and Purchasing Power Parity," Journal of Money, Credit and Banking, Blackwell Publishing, vol. 37(2), pages 361-369, April.
    12. Nelson, Charles R. & Plosser, Charles I., 1982. "Trends and random walks in macroeconmic time series : Some evidence and implications," Journal of Monetary Economics, Elsevier, vol. 10(2), pages 139-162.
    13. Paresh Kumar Narayan, 2007. "Do health expenditures ‘catch‐up’? Evidence from OECD countries," Health Economics, John Wiley & Sons, Ltd., vol. 16(10), pages 993-1008, October.
    14. Theo Hitiris & John Nixon, 2001. "Convergence of health care expenditure in the EU countries," Applied Economics Letters, Taylor & Francis Journals, vol. 8(4), pages 223-228.
    15. Marcelo Resende & Marcos Lima, 2005. "Market share instability in Brazilian industry: a dynamic panel data analysis," Applied Economics, Taylor & Francis Journals, vol. 37(6), pages 713-718.
    16. G. S. Maddala & Shaowen Wu, 1999. "A Comparative Study of Unit Root Tests with Panel Data and a New Simple Test," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 61(S1), pages 631-652, November.
    17. Banerjee, Anindya, 1999. "Panel Data Unit Roots and Cointegration: An Overview," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 61(0), pages 607-629, Special I.
    18. Levin, Andrew & Lin, Chien-Fu & James Chu, Chia-Shang, 2002. "Unit root tests in panel data: asymptotic and finite-sample properties," Journal of Econometrics, Elsevier, vol. 108(1), pages 1-24, May.
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    Cited by:

    1. Fallahi, Firouz, 2011. "Convergence of Total Health Expenditure as a Share of GDP: Evidence from Selected OECD Countries," MPRA Paper 51324, University Library of Munich, Germany.
    2. Wen-Yi Chen, 2013. "Does healthcare financing converge? Evidence from eight OECD countries," International Journal of Health Economics and Management, Springer, vol. 13(3), pages 279-300, December.
    3. Nicholas Apergis & Tsangyao Chang & Christina Christou & Rangan Gupta, 2017. "Convergence of Health Care Expenditures Across the US States: A Reconsideration," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 133(1), pages 303-316, August.
    4. Gülsüm AKARSU & Reyhan CAFRI & Hanife BIDIRDI, 2019. "Are Public-Private Components of Health Care Expenditures Converging Among OECD Countries? Evidence from a Nonlinear Panel Unit Root TestAbstract: Many countries devote an increasing proportion of the," Sosyoekonomi Journal, Sosyoekonomi Society.
    5. Chi Lau & Ka Fung & Lee Pugalis, 2014. "Is health care expenditure across Europe converging? Findings from the application of a nonlinear panel unit root test," Eurasian Business Review, Springer;Eurasia Business and Economics Society, vol. 4(2), pages 137-156, December.

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    More about this item

    JEL classification:

    • H51 - Public Economics - - National Government Expenditures and Related Policies - - - Government Expenditures and Health

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