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Are Health Care Expenditures and Personal Disposable Income Characterised by Asymmetric Behaviour? Evidence from US State-Level Data

Author

Listed:
  • Mulatu F. Zerihun

    (Tshwane University of Technology, Pretoria, South Africa)

  • Juncal Cunado

    (University of Navarra, Pamplona, Spain)

  • Rangan Gupta

    (Department of Economics, University of Pretoria)

Abstract

This paper examines the asymmetric behaviour of health care expenditure and disposable income in the 50 US states over the period 1966-2009 using nonparametric Triples test techniques. The results suggest that for 23 US states, real per capita health expenditures are characterized by asymmetric behaviour, while real per capita personal disposable income series exhibit asymmetric behaviour in 7 US states. Therefore, the main findings question the adequacy of linear models when modelling the behaviour of these two series.

Suggested Citation

  • Mulatu F. Zerihun & Juncal Cunado & Rangan Gupta, 2015. "Are Health Care Expenditures and Personal Disposable Income Characterised by Asymmetric Behaviour? Evidence from US State-Level Data," Working Papers 201566, University of Pretoria, Department of Economics.
    • Handle: RePEc:pre:wpaper:201566
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    Cited by:

    1. Apergis, Nicholas & Gupta, Rangan & Lau, Chi Keung Marco & Mukherjee, Zinnia, 2018. "U.S. state-level carbon dioxide emissions: Does it affect health care expenditure?," Renewable and Sustainable Energy Reviews, Elsevier, vol. 91(C), pages 521-530.
    2. Christophe André & Nikolaos Antonakakis & Rangan Gupta & Mulatu F. Zerihun, 2017. "Asymmetric Behaviour in Nominal and Real Housing Prices: Evidence from Advanced and Emerging Economies," Working Papers 201711, University of Pretoria, Department of Economics.

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    More about this item

    Keywords

    Asymmetric behaviour; Triples test; Per capita real healthcare expenditure; Per capita real personal disposable income; US states;
    All these keywords.

    JEL classification:

    • C22 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models; Diffusion Processes
    • C32 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models; Diffusion Processes; State Space Models
    • H51 - Public Economics - - National Government Expenditures and Related Policies - - - Government Expenditures and Health
    • I18 - Health, Education, and Welfare - - Health - - - Government Policy; Regulation; Public Health

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