Has healthcare expenditure converged across Australian states and territories?

Kris Ivanovski and Sefa Awaworyi Churchill ()
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Sefa Awaworyi Churchill: RMIT University

Empirical Economics, 2021, vol. 61, issue 6, No 15, 3417 pages

Abstract: Abstract We employ the Phillips and Sul (Econometrica 75(6):1771–1855, 2007) methodology to test for the convergence of healthcare expenditure across Australian states and territories. We utilise a nonlinear model that allows for heterogeneity and transitional dynamics and consider the convergence patterns of total, government and non-government healthcare expenditures. The results display varying degrees of convergence, specifically in government and non-government expenditures. The formation of convergence and non-convergence clusters suggests that health policies need not be uniform across all Australian states and territories but within convergent clubs. As a result, healthcare policies need to be implemented at the state level rather than at the national level.

Keywords: Healthcare expenditure; Club convergence; Club clustering; Convergence; Health policy; Australia (search for similar items in EconPapers)
JEL-codes: C22 H75 (search for similar items in EconPapers)
Date: 2021
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Citations: View citations in EconPapers (3)

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DOI: 10.1007/s00181-021-02016-4

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