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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)

  • Juncal Cunado

    (University of Navarra)

  • Rangan Gupta

    (University of Pretoria)

Abstract

This paper examines the asymmetry (steepness and deepness asymmetry) in per capita health care expenditure and disposable income series in the 50 US states over the period 1966–2009, using the nonparametric Triples test techniques, together with the parametric Fisher–Pearson skewness test. The results suggest significant evidence of asymmetric behaviour (mainly, steepness asymmetry) in many of these series, questioning, thus, the adequacy of linear models when modelling the behaviour of these two series.

Suggested Citation

  • Mulatu F. Zerihun & Juncal Cunado & Rangan Gupta, 2017. "Are Health Care Expenditures and Personal Disposable Income Characterised by Asymmetric Behaviour? Evidence from US State-Level Data," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 131(2), pages 527-542, March.
    • Handle: RePEc:spr:soinre:v:131:y:2017:i:2:d:10.1007_s11205-016-1275-8
    DOI: 10.1007/s11205-016-1275-8
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    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; Fisher–Pearson test; 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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