The Determinants of Health Expenditures in Tunisia: An ARDL Bounds Testing Approach

Sami Chaabouni and Chokri Abednnadher
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Sami Chaabouni: Department of Economics, University of Sfax, Sfax, Tunisia
Chokri Abednnadher: Department of Economics, University of Sfax, Sfax, Tunisia

International Journal of Information Systems in the Service Sector (IJISSS), 2014, vol. 6, issue 4, 60-72

Abstract: This article examines the determinants of health expenditures in Tunisia during the period 1961-2008, using the Autoregressive Distributed Lag (ARDL) approach by Pesaran et al. (2001). The results of the bounds test show that there is a stable long-run relationship between per capita health expenditure, GDP, population ageing, medical density and environmental quality. In fact, on the one hand there are the short-run and long-run results which reveal that health care is a necessity, not a luxury good. On the other hand, results of the causality test show that there is a bidirectional causal flow from health expenditures to income, both in the short and in the long run.

Date: 2014
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Persistent link: https://EconPapers.repec.org/RePEc:igg:jisss0:v:6:y:2014:i:4:p:60-72

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