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A Panel Data Approach for Income-Health Causality

  • Erkan Erdil
  • I. Hakan Yetkiner

This study provides evidence on income-health causality by employing a large micro panel data set with a VAR representation. The findings verify that dominant type of causality is bidirectional which cast doubt on the performance OLS estimates in the literature. Moreover, one-way causality pattern is not similar for different income groups. One-way causality generally runs from income to health in low- and middle-income countries whereas the reverse holds for high-income countries.

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Paper provided by Research unit Sustainability and Global Change, Hamburg University in its series Working Papers with number FNU-47.

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Length: 17 pages
Date of creation: Apr 2004
Date of revision: Apr 2004
Handle: RePEc:sgc:wpaper:47
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  1. Pedro Pita Barros, 1998. "The black box of health care expenditure growth determinants," Health Economics, John Wiley & Sons, Ltd., vol. 7(6), pages 533-544.
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  19. Hsiao, C. & Mountain, D.C. & Tsui, K.Y. & Chan, M.W.L., 1989. "Modeling Ontario Regional Electricity System Demand Using A Mixed Fixed And Random Coefficients Approach," Papers m8906, Southern California - Department of Economics.
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  29. Diana Weinhold, 2004. "A Dynamic “Fixed Effects” Model for Heterogeneous Panel Data," Econometrics 0410003, EconWPA.
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