Health care expenditure and GDP: An international panel smooth transition approach
AbstractIn this paper, we investigate the potential threshold effects in the relationship between national expenditures on health care and national income. Using a panel threshold regression model, we derive country-specific and time-specific income elasticities for 17 OECD countries over the period 1975–2003. In contrast to many previous analyses, our empirical results show that health care is a necessity rather than a luxury. Further, the relationship between health expenditure and income seems rather nonlinear, changing over time and across countries.
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Bibliographic InfoPaper provided by University Library of Munich, Germany in its series MPRA Paper with number 14322.
Date of creation: May 2009
Date of revision:
Health expenditure; Income elasticity; Panel smooth threshold regression models;
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- I1 - Health, Education, and Welfare - - Health
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