Does fiscal deficit, public debt, economic growth and energy consumption affect health expenditure in India: an empirical evidence based ARDL bound testing approach

Tariq Ahmad Lone and Parveez Ahmad Lone

International Journal of Happiness and Development, 2022, vol. 7, issue 1, 1-14

Abstract: This paper examines the impact of fiscal deficit, public debt, economic growth and of energy consumption on health expenditure in the country. Annual data for the time period 1980-2019 has been taken for analytical purposes. The bound testing approach ARDL model has been used for testing the long run cointegration among variables. Besides vector error correction model (VECM) has been utilised for determining the direction of causality. The results specify the presence of long run causal relationship between fiscal deficit, public debt, economic growth, energy consumption and health expenditure. However in the short run a single relationship between GDP and health expenditure was observed. These results reveal that all these variables are important but GDP is more important for maintenance of health expenditure. Thus we recommend that prudent public debt management, fiscal discipline, efficient energy consumption and economic growth should go a long way in maintaining the health expenditure and therefore better health outcomes.

Keywords: health expenditure; ARDL bound; VECM; vector error correction model; cointegration; causality. (search for similar items in EconPapers)
Date: 2022
References: Add references at CitEc
Citations:

Downloads: (external link)
http://www.inderscience.com/link.php?id=124164 (text/html)
Access to full text is restricted to subscribers.

Related works:
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:ids:ijhdev:v:7:y:2022:i:1:p:1-14

Access Statistics for this article

More articles in International Journal of Happiness and Development from Inderscience Enterprises Ltd
Bibliographic data for series maintained by Sarah Parker ().