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On the relationship between healthcare expenditure and longevity: evidence from the continuous wavelet analyses

Author

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  • Wen-Yi Chen

    () (National Taichung University of Science and Technology, Taiwan)

  • Miin-Jye Wen

    () (National Cheng Kung University, Taiwan)

  • Yu-Hui Lin

    () (Nan Kai University of Technology, Taiwan)

  • Yia-Wun Liang

    () (National Taichung University of Science and Technology, Taiwan)

Abstract

Abstract This study applies the continuous wavelet analyses to identify four possible perspectives on the causality between healthcare expenditure and longevity: health as a determinant of healthcare expenditure (longevity leads), healthcare expenditure as a determinant of health (healthcare expenditure leads), feedback (bidirectional relation) and neutrality (no correlation). Our results show that none of these four perspectives regarding the causality of healthcare expenditure and longevity prevail over the period of 1963–2010 in the US. Healthcare expenditure is likely to serve as a predictor to predict the volatility of longevity in the short, medium, and long run, while longevity is likely to serve as a predictor to predict the volatility of healthcare expenditure only in the medium run.

Suggested Citation

  • Wen-Yi Chen & Miin-Jye Wen & Yu-Hui Lin & Yia-Wun Liang, 2016. "On the relationship between healthcare expenditure and longevity: evidence from the continuous wavelet analyses," Quality & Quantity: International Journal of Methodology, Springer, vol. 50(3), pages 1041-1057, May.
  • Handle: RePEc:spr:qualqt:v:50:y:2016:i:3:d:10.1007_s11135-015-0189-x
    DOI: 10.1007/s11135-015-0189-x
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    Citations

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    Cited by:

    1. Wen-Yi CHEN & Yu-Hui LIN, 2016. "Co-Movement of Healthcare Financing in OECD Countries: Evidence from Discrete Wavelet Analyses," Journal for Economic Forecasting, Institute for Economic Forecasting, vol. 0(3), pages 40-56, September.
    2. repec:eee:reveco:v:49:y:2017:i:c:p:484-498 is not listed on IDEAS
    3. repec:bla:econpa:v:36:y:2017:i:1:p:17-31 is not listed on IDEAS

    More about this item

    Keywords

    Longevity; Healthcare expenditure; Continuous wavelet analysis; Time domain; Frequency domain;

    JEL classification:

    • C58 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Financial Econometrics
    • I12 - Health, Education, and Welfare - - Health - - - Health Behavior
    • J11 - Labor and Demographic Economics - - Demographic Economics - - - Demographic Trends, Macroeconomic Effects, and Forecasts

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