International Health Expenditure and GDP: New Multivariate Cointegration Panel Data Results

Ulf-G. Gerdtham and Mickael Löthgren ()
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Mickael Löthgren: Dept. of Economic Statistics, Stockholm School of Economics, Postal: Stockholm School of Economics, P.O. Box 6501, S-113 83 Stockholm, Sweden

No 258, SSE/EFI Working Paper Series in Economics and Finance from Stockholm School of Economics

Abstract: In this paper we test for existence of cointegration between health expenditure and GDP using data from 19 OECD countries for the period 1960-1995. Country-by-country and panel results based on the Johansen multivariate likelihood-based inference and a new panel test for cointegration rank are presented. The empirical modelling is based on a bivariate vector error correction model that allows for trending data as well as an intercept and a trend in the cointegrating relation. Given this model, the main result indicates that a cointegrating relation exists between health expenditure and GDP.

Keywords: Cointegration; Heterogeneous dynamic panels; Maximum likelihood (search for similar items in EconPapers)
JEL-codes: C12 C22 C23 I10 (search for similar items in EconPapers)
Pages: 13 pages
Date: 1998-09-21
New Economics Papers: this item is included in nep-ecm and nep-hea
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Published in Applied Economics, 2002, pages 1679-1686.

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Persistent link: https://EconPapers.repec.org/RePEc:hhs:hastef:0258

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