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International Health Expenditure and GDP: New Multivariate Cointegration Panel Data Results

Author

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  • Gerdtham, Ulf-G.

    (Centre for Health Economics)

  • Löthgren, Mickael

    (Dept. of Economic Statistics, Stockholm School of Economics)

Abstract

In this paper we test for existence of cointegration between health expenditure and GDP using data from 19 OECD countries for the period 1960-1995. Country-by-country and panel results based on the Johansen multivariate likelihood-based inference and a new panel test for cointegration rank are presented. The empirical modelling is based on a bivariate vector error correction model that allows for trending data as well as an intercept and a trend in the cointegrating relation. Given this model, the main result indicates that a cointegrating relation exists between health expenditure and GDP.

Suggested Citation

  • Gerdtham, Ulf-G. & Löthgren, Mickael, 1998. "International Health Expenditure and GDP: New Multivariate Cointegration Panel Data Results," SSE/EFI Working Paper Series in Economics and Finance 258, Stockholm School of Economics.
    • Handle: RePEc:hhs:hastef:0258
    as

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    References listed on IDEAS

    as
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    More about this item

    Keywords

    Cointegration; Heterogeneous dynamic panels; Maximum likelihood;
    All these keywords.

    JEL classification:

    • C12 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Hypothesis Testing: General
    • C22 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models; Diffusion Processes
    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
    • I10 - Health, Education, and Welfare - - Health - - - General

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