Journal
JOURNAL OF HEALTH ECONOMICS
Volume 22, Issue 2, Pages 313-323Publisher
ELSEVIER SCIENCE BV
DOI: 10.1016/S0167-6296(02)00122-4
Keywords
health expenditures; panel unit root tests; Lagrange multiplier; structural break
Ask authors/readers for more resources
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.
Authors
I am an author on this paper
Click your name to claim this paper and add it to your profile.
Reviews
Recommended
No Data Available