Stationarity of health expenditures and GDP: evidence from panel unit root tests with heterogeneous structural breaks

    Authors

    T. Jewell; J. Lee; M. Tieslau;M. C. Strazicich

    Comments

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    Abbreviated Journal Title

    J. Health Econ.

    Keywords

    health expenditures; panel unit root tests; Lagrange multiplier; structural break; PURCHASING POWER PARITY; CARE EXPENDITURE; GREAT CRASH; COINTEGRATION; HYPOTHESIS; LUXURY; Economics; Health Care Sciences & Services; Health Policy & Services

    Abstract

    This paper re-examines the stationarity of national health care expenditures and GDP in a panel setting utilizing data from 20 OECD countries over the period from 1960 to 1997. Previous research in this area has recognized the drawback of not allowing for structural breaks in their unit root tests and noted that their empirical results may not be robust. We advance the literature by utilizing a recently developed panel LM unit root test that allows for heterogeneous level shifts. In contrast to previous analyses that did not consider breaks, our results reject the unit root null hypothesis for both series. (C) 2003 Elsevier Science B.V. All rights reserved.

    Journal Title

    Journal of Health Economics

    Volume

    22

    Issue/Number

    2

    Publication Date

    1-1-2003

    Document Type

    Article

    Language

    English

    First Page

    313

    Last Page

    323

    WOS Identifier

    WOS:000181521300008

    ISSN

    0167-6296

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