Munich Personal RePEc Archive

Health care expenditure and GDP: An international panel smooth transition approach

Chakroun, Mohamed (2009): Health care expenditure and GDP: An international panel smooth transition approach. Published in: International Journal of Economics , Vol. 4, No. 1 (June 2010)

This is the latest version of this item.

[img]
Preview
PDF
MPRA_paper_17559.pdf

Download (200Kb) | Preview

Abstract

In this paper, we investigate the potential threshold effects in the relationship between national expenditures on health care and national income. Using a panel threshold regression model, we derive country-specific and time-specific income elasticities for 17 OECD countries over the period 1975–2003. In contrast to many previous analyses, our empirical results show that health care is a necessity rather than a luxury. Further, the relationship between health expenditure and income seems rather nonlinear, changing over time and across countries.

Available Versions of this Item

UB_LMU-Logo
MPRA is a RePEc service hosted by
the Munich University Library in Germany.