Exploring the technology–healthcare expenditure nexus: a panel error correction approach

Elisabet Rodriguez Llorian () and Janelle Mann
Additional contact information
Elisabet Rodriguez Llorian: University of British Columbia

Empirical Economics, 2022, vol. 62, issue 6, No 16, 3086 pages

Abstract: Abstract Technology is perceived as a key factor driving the increase in per capita healthcare expenditure. We assess this effect between 1981 and 2019 for a panel of OECD member countries using a panel error correction model, which was estimated using the dynamic common correlated effect approach of Chudik and Pesaran (J Econom 188(2):393–420, 2015). 10.1016/j.jeconom.2015.03.007. Results corroborate previous findings that medical technology and healthcare expenditure follow a long-run relationship. Incorporating heterogeneity and controlling for cross-sectional dependence and endogeneity reveals substantial variation in medical technology’s effect across OECD member countries. Overall, medical technology is a key factor in driving the increase in per capita healthcare expenditure for less than half of the panel of OECD member countries. This finding is consistent across three different technology proxies and suggests that policymakers should utilize country-specific coefficients to inform decisions.

Keywords: Healthcare expenditure; Medical technology; OECD; Panel cointegration (search for similar items in EconPapers)
JEL-codes: H51 I10 O30 (search for similar items in EconPapers)
Date: 2022
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
http://link.springer.com/10.1007/s00181-021-02125-0 Abstract (text/html)
Access to the full text of the articles in this series is restricted.

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:spr:empeco:v:62:y:2022:i:6:d:10.1007_s00181-021-02125-0

Ordering information: This journal article can be ordered from
http://www.springer. ... rics/journal/181/PS2

DOI: 10.1007/s00181-021-02125-0

Access Statistics for this article

Empirical Economics is currently edited by Robert M. Kunst, Arthur H.O. van Soest, Bertrand Candelon, Subal C. Kumbhakar and Joakim Westerlund

More articles in Empirical Economics from Springer
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().