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Health-care expenditure, GDP and share of the elderly in Japan: a panel cointegration analysis

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  • Tomoko Tamakoshi
  • Shigeyuki Hamori

Abstract

By employing a panel data set of 47 prefectures in Japan, this article investigates the cointegrating relationship between health-care expenditure, GDP and population share of the elderly by using panel cointegration tests developed by Pedroni (1999). Our empirical result shows that there is a cointegrating relationship between the three variables. We also estimate the effects of GDP and share of the elderly on health-care expenditure by employing the group-mean fully modified ordinary least-squares (FMOLS) method of Pedroni (2001) and find that the coefficient on the share of the elderly is positively significant. These findings highlight the importance of addressing the issue of an ageing society to curb rising health-care expenditures in Japan.

Suggested Citation

  • Tomoko Tamakoshi & Shigeyuki Hamori, 2015. "Health-care expenditure, GDP and share of the elderly in Japan: a panel cointegration analysis," Applied Economics Letters, Taylor & Francis Journals, vol. 22(9), pages 725-729, June.
    • Handle: RePEc:taf:apeclt:v:22:y:2015:i:9:p:725-729
    DOI: 10.1080/13504851.2014.972540
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    Cited by:

    1. Yang Yang & Han Lin Shang & Joel E. Cohen, 2022. "Temporal and spatial Taylor's law: Application to Japanese subnational mortality rates," Journal of the Royal Statistical Society Series A, Royal Statistical Society, vol. 185(4), pages 1979-2006, October.
    2. Deepak Kumar BEHERA & Umakant DASH, 2017. "Impact of GDP and tax revenue on health care financing: An empirical investigation from Indian states," Theoretical and Applied Economics, Asociatia Generala a Economistilor din Romania / Editura Economica, vol. 0(2(611), S), pages 249-262, Summer.
    3. Kabaya, Kei, 2021. "Empirical analysis of associations between health expenditure and forest environments: A case of Japan," Ecological Economics, Elsevier, vol. 181(C).
    4. Alberto Bucci & Lorenzo Carbonari & Monia Ranalli & Giovanni Trovato, 2019. "Health and Development," CEIS Research Paper 470, Tor Vergata University, CEIS, revised 24 Mar 2021.
    5. Yang, Zhenshan & Jia, Peng & Liu, Weidong & Yin, Hongchun, 2017. "Car ownership and urban development in Chinese cities: A panel data analysis," Journal of Transport Geography, Elsevier, vol. 58(C), pages 127-134.

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