Title

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

Authors

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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