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Has healthcare expenditure converged across Australian states and territories?

Author

Listed:
  • Kris Ivanovski

    (Monash University)

  • Sefa Awaworyi Churchill

    (RMIT University)

Abstract

We employ the Phillips and Sul (Econometrica 75(6):1771–1855, 2007) methodology to test for the convergence of healthcare expenditure across Australian states and territories. We utilise a nonlinear model that allows for heterogeneity and transitional dynamics and consider the convergence patterns of total, government and non-government healthcare expenditures. The results display varying degrees of convergence, specifically in government and non-government expenditures. The formation of convergence and non-convergence clusters suggests that health policies need not be uniform across all Australian states and territories but within convergent clubs. As a result, healthcare policies need to be implemented at the state level rather than at the national level.

Suggested Citation

  • Kris Ivanovski & Sefa Awaworyi Churchill, 2021. "Has healthcare expenditure converged across Australian states and territories?," Empirical Economics, Springer, vol. 61(6), pages 3401-3417, December.
    • Handle: RePEc:spr:empeco:v:61:y:2021:i:6:d:10.1007_s00181-021-02016-4
    DOI: 10.1007/s00181-021-02016-4
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    Cited by:

    1. Sefa Awaworyi Churchill & John Inekwe & Kris Ivanovski, 2023. "Has the COVID-19 pandemic converged across countries?," Empirical Economics, Springer, vol. 64(5), pages 2027-2052, May.

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    More about this item

    Keywords

    Healthcare expenditure; Club convergence; Club clustering; Convergence; Health policy; Australia;
    All these keywords.

    JEL classification:

    • H75 - Public Economics - - State and Local Government; Intergovernmental Relations - - - State and Local Government: Health, Education, and Welfare
    • C22 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models; Diffusion Processes

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