Aggregate health care expenditure in the United States: evidence from cointegration tests

Murthy, Nirmala; Ukpolo, Victor

doi:10.1080/00036849400000094

Cited by 107 publications

(76 citation statements)

References 28 publications

Supporting

Mentioning

Contrasting

Unclassified

Order By: Relevance

“…In the more recent stage of research -which started with MURTHY/ UKPOLO (1994) and HANSEN/KING (1996) -the time series properties of the variables in question have received more attention than before. 2 Unit root and cointegration tests were performed 1 An exception is LEU (1986) who found two parameters relating to the structure of national health systems to be statistically significant explanatory variables, namely the share of public expenditure in total health spending and the presence of a centralized national health system.…”

Section: <Insert Figure 1 Around Here>mentioning

confidence: 99%

What drives health care expenditure?—Baumol's model of ‘unbalanced growth’ revisited

Hartwig

2008

Journal of Health Economics

191

167

View full text Add to dashboard Cite

Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. Terms of use: Documents in EconStor may AbstractThe share of health care expenditure in GDP rises rapidly in virtually all OECD countries, causing increasing concern among politicians and the general public. Yet, economists have to date failed to reach an agreement on what the main determinants of this development are. This paper revisits Baumol's (1967) model of 'unbalanced growth', showing that the latter offers a ready explanation for the observed inexorable rise in health care expenditure. The main implication of Baumol's model in this context is that health care expenditure is driven by wage increases in excess of productivity growth.This hypothesis is tested empirically using data from a panel of 19 OECD countries. Our tests yield robust evidence in favor of Baumol's theory.

show abstract

Section: <Insert Figure 1 Around Here>mentioning

confidence: 99%

What drives health care expenditure?—Baumol's model of ‘unbalanced growth’ revisited

Hartwig

2008

Journal of Health Economics

191

167

View full text Add to dashboard Cite

show abstract

“…However, there is no empirical consensus on the effect of real prices on health care spending. See (Hartwig, 2008;Okunade et al, 2004), who report a positive and statistically signi…cant e¤ect, and (Gerdtham et al, 1992;Murthy and Ukpolo, 1994) who report an insigni…cant e¤ect. Yet, there are skeptics who do not recommend the use of price indexes in health care, especially across countries that provide health care at no cost or at very low cost, see Berndt et al (2000).…”

Section: Hasmentioning

confidence: 99%

Health care expenditure and income in the OECD reconsidered: Evidence from panel data

2010

View full text Add to dashboard Cite

This paper reconsiders the long-run economic relationship between health care expenditure and income using a panel of 20 OECD countries observed over the period . In particular, the paper studies the non-stationarity and cointegration properties between health care spending and income. This is done in a panel data context controlling for both crosssection dependence and unobserved heterogeneity. Cross-section dependence is modelled through a common factor model and through spatial dependence. Heterogeneity is handled through fixed effects in a panel homogeneous model and through a panel heterogeneous model. Our findings suggest that health care is a necessity rather than a luxury, with an elasticity much smaller than that estimated in previous studies.Key Words: Health expenditure, income elasticity, cross section dependence, heterogeneous panels, factor models. Abstract This paper reconsiders the long-run economic relationship between health care expenditure and income using a panel of 20 OECD countries observed over the period . In particular, the paper studies the non-stationarity and cointegration properties between health care spending and income. This is done in a panel data context controlling for both cross-section dependence and unobserved heterogeneity. Cross-section dependence is modelled through a common factor model and through spatial dependence. Heterogeneity is handled through …xed e¤ects in a panel homogeneous model and through a panel heterogeneous model. Our …ndings suggest that health care is a necessity rather than a luxury, with an elasticity much smaller than that estimated in previous studies.JEL Classi…cation: C31, C33, H51

show abstract

“…Most of the studies are based on a simple relationship between health expenditure and economic growth. Important examples include Baltagi and Moscone [7], Amiri and Ventelou [8], Albouy, Laurent and Debrand [9], Bloom and Canning [10], Clemente, Marcuiello, Montanes and Pueyo [11], Bhargava, Jamison, Lau and Murray [12], Matteo and Matteo [13], Hansen and King [14], Murthy and Ukpolo [15], Leu [16]. Gyimah-Brempong and Wilson [17] find that the stock of health effect has positive and statistically significant effect on the growth of per capita income in both samples.…”

Section: Human Capital Health Expenditure and Economic Growthmentioning

confidence: 99%

Dynamics of Health Expenditures in OECD Countries: Panel ARDL Approach

Doğan¹,

Tülüce²,

Dogan³

2014

TEL

View full text Add to dashboard Cite

This study used a panel data set, which is including 15 OECD countries that had high income per capita for the time period of 1995-2011. Following causality and autoregressive distributed lag (ARDL), paper yields: 1) respectively the largest and the smallest impacts on health expenditures are caused by public spending and the influences of Age Dependency Ratio Young (ADRY); 2) income and Age Dependency Ratio Old (ADRO) on health expenditures are positive; 3) another striking inference is that while young working population rate is increasing, health expenditure is decreasing.

show abstract

Aggregate health care expenditure in the United States: evidence from cointegration tests

Cited by 107 publications

References 28 publications

What drives health care expenditure?—Baumol's model of ‘unbalanced growth’ revisited

What drives health care expenditure?—Baumol's model of ‘unbalanced growth’ revisited

Health care expenditure and income in the OECD reconsidered: Evidence from panel data

Dynamics of Health Expenditures in OECD Countries: Panel ARDL Approach

Contact Info

Product

Resources

About