Is Health Care a Necessity or a Luxury? Evidence from Local Quantile Regressions
In this paper, local relationship between per capita health expenditure and GDP is investigated with local quantile regressions. The advantage of using local quantile regressions is the assumption of homogeneity on per capita health care expenditure could be relaxed so that number of countries in a cross-sectional model can be enlarged. Per capita GDPs and health expenditures of 151 countries in 2000 and 25%, 50% and 75% quantile regressions are considered in this paper. To check significance of the relationship in local quantile regressions, significance tests for nonparametric regressions suggested by Racine(1997) and Ait-Sahalia et al.(2001) are implemented. The adequacy of of these tests are investigated by Monte Carlo simulations. Based on our primary simulation results, these test are suggestive. Our empirical results show that per capita GDP has significant effect on per capita health expenditure. The sizes of effect are quite different among 25%, 50% and 75% quantiles. Besides, we also find the effects are distinct among different ranges of per capita income. In other words, the per capita health care expenditures are heterskedastic. The conditional distribution of health care expenditure on per capita GDP is asymmetric and skewed to the left. For low per capita GDP countries, the effect of income on health expenditure is insignificant, which indicates the health care is a necessity. On the contrast, the effect becomes larger for the countries with high per capita GDPs, which implies the health care is a luxury for these countries
To our knowledge, this item is not available for
download. To find whether it is available, there are three
1. Check below under "Related research" whether another version of this item is available online.
2. Check on the provider's web page whether it is in fact available.
3. Perform a search for a similarly titled item that would be available.
|Date of creation:||11 Aug 2004|
|Date of revision:|
|Contact details of provider:|| Phone: 1 212 998 3820|
Fax: 1 212 995 4487
Web page: http://www.econometricsociety.org/pastmeetings.asp
More information through EDIRC
When requesting a correction, please mention this item's handle: RePEc:ecm:ausm04:78. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Christopher F. Baum)
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.