Time-Varying Income Elasticities of Healthcare Expenditure for the OECD and Eurozone

Isabel Casas (), Jiti Gao, Bin Peng () and Shangyu Xie ()

No 28/19, Monash Econometrics and Business Statistics Working Papers from Monash University, Department of Econometrics and Business Statistics

Abstract: Income elasticity dynamics of health expenditure is considered for the OECD and Eurozone over the period 1995-2014. Motivated by some modelling challenges, this paper studies a class of non-linear cointegration panel data models, controlling for cross-section dependence and certain endogeneity. Using the corresponding methods, our empirical analyses show a slight increase in the income elasticity of the healthcare expenditure over the years, but still with values under 1, meaning that healthcare is not a luxury good in the OECD and Eurozone.

Keywords: health expenditure; income elasticity; nonparametric kernel smoothing; nonstationarity. (search for similar items in EconPapers)
JEL-codes: C14 C23 H51 (search for similar items in EconPapers)
Pages: 53
Date: 2019
New Economics Papers: this item is included in nep-ecm, nep-hea and nep-ore
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

Downloads: (external link)
https://www.monash.edu/business/ebs/research/publications/ebs/wp28-2019.pdf (application/pdf)

Related works:
Journal Article: Time‐varying income elasticities of healthcare expenditure for the OECD and Eurozone (2021)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:msh:ebswps:2019-28

Ordering information: This working paper can be ordered from
http://business.mona ... -business-statistics

Access Statistics for this paper

More papers in Monash Econometrics and Business Statistics Working Papers from Monash University, Department of Econometrics and Business Statistics PO Box 11E, Monash University, Victoria 3800, Australia. Contact information at EDIRC.
Bibliographic data for series maintained by Professor Xibin Zhang ().