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An International Comparison of Health Care Expenditure Determinants

Author

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  • Catherine Bac

    (DREES, Ministère de l'Emploi et de la Solidarité)

  • Yannick le Pen

    (LEN-C3E, Université de Nantes)

Abstract

In this paper, we estimate a health care demand function for 18 OECD countries for the period 1972-1995. We consider a demand side approach where health expenditure depend on per capita GDP and the relative price of health care. We use panel data unit root and stationarity tests to characterize our data. Then, we test cointegration between our variables with Kao[16] panel data cointegration tests. As we accept cointegration, we compare different estimators (OLS, FMOLS, DOLS). Results give conflicting evidence for the value of health expenditure income elasticity. The least biased estimator gives a value that exceeds unity.

Suggested Citation

  • Catherine Bac & Yannick le Pen, 2002. "An International Comparison of Health Care Expenditure Determinants," 10th International Conference on Panel Data, Berlin, July 5-6, 2002 C5-1, International Conferences on Panel Data.
    • Handle: RePEc:cpd:pd2002:c5-1
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    References listed on IDEAS

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    Cited by:

    1. Lago-Peñas, Santiago & Cantarero-Prieto, David & Blázquez-Fernández, Carla, 2013. "On the relationship between GDP and health care expenditure: A new look," Economic Modelling, Elsevier, vol. 32(C), pages 124-129.
    2. Fırat Bilgel & Kien C. Tran, 2013. "The determinants of Canadian provincial health expenditures: evidence from a dynamic panel," Applied Economics, Taylor & Francis Journals, vol. 45(2), pages 201-212, January.
    3. Livio Di Matteo, 2010. "The sustainability of public health expenditures: evidence from the Canadian federation," The European Journal of Health Economics, Springer;Deutsche Gesellschaft für Gesundheitsökonomie (DGGÖ), vol. 11(6), pages 569-584, December.
    4. Dreger, C. & Reimers, H.E., 2005. "Health Care Expenditures in OECD Countries: A Panel Unit Root and Cointegration Analysis," International Journal of Applied Econometrics and Quantitative Studies, Euro-American Association of Economic Development, vol. 2(2), pages 5-20.
    5. Huarng, Kun-Huang & Yu, Tiffany Hui-Kuang, 2015. "Healthcare expenditure with causal recipes," Journal of Business Research, Elsevier, vol. 68(7), pages 1570-1573.

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    More about this item

    Keywords

    Cointegration; Health Expenditure; OECD; Panel test;
    All these keywords.

    JEL classification:

    • C12 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Hypothesis Testing: General
    • C22 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models; Diffusion Processes
    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
    • I10 - Health, Education, and Welfare - - Health - - - General

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