Dynamics of Health Expenditures in OECD Countries: Panel ARDL Approach

Doğan, İbrahim; Tülüce, Nadide Sevil Halıcı; Dogan, Aydan

doi:10.4236/tel.2014.48082

Cited by 12 publications

(7 citation statements)

References 23 publications

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“…The empirical results indicate that real per capita health expenditure has positive and significant impact on economic growth. Doğan et al (2014) studied the dynamics of health expenditure in OECD countries with panel ARDL approach. The result indicates that there is a strong correlation between some components of health such as young dependency ratio but the striking influence is that while young working population growth is increasing, expenditure decreases.…”

Section: Literature Reviewmentioning

confidence: 99%

Public Health Expenditure, Economic Growth and Health Outcomes in Nigeria

Edeme

Olisakwe

2019

International Journal of Public Policy and Administration Resea

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It is argued that while increase in budgetary allocation to social services is highly desirable, it is not sufficient to guarantee enhancement in better health outcome. This paper links public health expenditure, economic growth and health outcomes and the causality among them using Nigeria data. The finding suggests increase in public health expenditure has decreased infant mortality rate while infant mortality rate is negatively correlated with economic growth. Interestingly, the direction of causality among public health expenditure, infant mortality rate and growth is unidirectional, from public health expenditure to growth. Contribution/Originality: This is one of the few studies which have investigated public health expenditure, economic growth and health outcomes (infant mortality rate) in Nigeria. 1. INTRODUCTION Health undoubtedly is one of the most important factors that determine the quality of human capital, a necessary factor for economic growth. Therefore, any public expenditure on health can be viewed as a form of investment in the overall health status of a nation (Dang et al., 2016). A consensus of opinion have been formed among researchers recognizing health as a public good, the demand and supply of which cannot be left at the mercy of invisible hands or profit maximizing individual as well as on considerations of utility maximizing conduct alone. The recognition of the above led the World Health Organization (WHO) to propose at the 2010 World Health Assembly, issues that will address financing of health, which will ensure qualitative and affordable healthcare services. Riman and Akpan (2012) also alludes that the pattern of health financing is closely and indivisibly linked to the quality of health outcomes, capable of achieving the long term goal of enhancing nation's economic development. Health care financing does not only involve how to raise sufficient resources to finance health care needs, but also on how to ensure affordability and accessibility of healthcare services, equity in access to medical services as well as guarantee financial risk protection. Carrin et al. (2007), Riman et al.

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Section: Literature Reviewmentioning

confidence: 99%

Public Health Expenditure, Economic Growth and Health Outcomes in Nigeria

Edeme

Olisakwe

2019

International Journal of Public Policy and Administration Resea

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“…Another limitation of the study is that it is mostly an empirical exercise without using any explicit theoretical model. However, similar approaches are not uncommon in this type of study in literature, such as in Dogan et al (74), Fedeli (65), Mehmood et al (62), and Iheoma (64). In addition, no explicit political propositions are considered in the regression, nor did we include a regional analysis.…”

Section: Heterogeneity and Country-specific Estimates Of Elasticitiesmentioning

confidence: 76%

Resiliency of healthcare expenditure to income shock: Evidence from dynamic heterogeneous panels

Shimul

Kabir²,

Kadir³

2023

Front. Public Health

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Using the World Bank data over the period of 1960–2019, this study aims at estimating the resiliency of health expenditures against gross domestic product (GDP). Long-run and short-run elasticities are calculated using the type of panel time series methods that are exclusively designed for dynamic heterogeneous panels: Mean Group, Pooled Mean Group, and Dynamic Fixed Effects estimators. These methods permit better estimations of elasticity with considerable heterogeneity across the 177 countries included in this study. Along with a standard elasticity estimation, this study estimates country-specific long-run and short-run elasticities along with error correction components. The study finds that the long-run elasticity of income is very close to unity, but short-run coefficients are insignificant for most nations. In addition, most countries revert to long-run equilibrium reasonably quickly if there is shock as the error correction coefficients are negative and, in many cases, very close to one. While for most developed countries, the short-run elasticities are lower in comparison with the short-run elasticities of developing countries indicating that many developing countries may face a larger decrease in health expenditure with the forecasted decline in income due to impending economic recession. Therefore, although this study is not directly intended to capture the post-COVID-19 effects, the study estimates may project the potential responses in health expenditure across countries due to potential income shocks.

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“…Second, there exists a multidimensional and complex interdependence between the explanatory variables, indicating serious policy implications for Afghanistan when developing relevant policies. The results are consistent with those of Mehrara et al [ 80 ], Sghari [ 81 ], Lago-Peñas et al [ 82 ], Marta and Noelia [ 83 ], Ashiabi et al [ 84 ], Owusu et al [ 85 ], Lakshmana [ 86 ], Linden and Ray [ 87 ], Akif and Torusdağ [ 88 ], Lopreite and Zhu [ 89 ], Yetim et al [ 34 ], Rahman and Alam [ 90 ], Doğan et al [ 91 ], Dhrifi [ 92 ], Abbas and Awan [ 93 ], Bilgili et al [ 94 ], and Yang et al [ 95 ], who also provided statistical evidence on the significant relationships between health spending, gross domestic product, child mortality rate, and the age dependency ratio in different geographical contexts. the present study, in addition to extending the findings for Afghanistan, adds to the existing literature and provides evidence on the bidirectional causality nexus between health spending and long-run civil war proxied by the per capita cost of war in Afghanistan.…”

Section: Discussionmentioning

confidence: 99%

The health consequences of civil wars: evidence from Afghanistan

2023

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This study examines the effects of long-run civil wars on healthcare, which is an important component of human capital development and their causality nexus in Afghanistan using the MVAR (modified vector autoregressive) approach and the Granger non-causality model covering data period 2002Q3-2020Q4. The primary results support a significant long-run relationship between variables, while the results of the MVAR model indicate the per capita cost of war, per capita GDP, and age dependency ratio have significantly positive impacts on per capita health expenditures, whereas child mortality rate and crude death rate have negative impacts. The results of the Granger non-causality approach demonstrate that there is a statistically significant bidirectional causality nexus between per capita health expenditure, per capita cost of war, per capita GDP, child mortality rate, crude death rate, and age dependency ratio, while it also supports the existence of strong and significant interconnectivity and multidimensionality between per capita cost of war and per capita health expenditure, with a significantly strong feedback response from the control variables. Important policy implications sourced from the key findings are also discussed.

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Dynamics of Health Expenditures in OECD Countries: Panel ARDL Approach

Cited by 12 publications

References 23 publications

Public Health Expenditure, Economic Growth and Health Outcomes in Nigeria

Public Health Expenditure, Economic Growth and Health Outcomes in Nigeria

Resiliency of healthcare expenditure to income shock: Evidence from dynamic heterogeneous panels

The health consequences of civil wars: evidence from Afghanistan

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