Health care expenditure and GDP: panel data unit root test results
Article Abstract:
The correlation between health care expenditure (HCE) and gross national income among highly developed nations may not be efficiently analyzed if the number of countries are aggregated in a single sample. This conclusion was reached after it was shown that incorporating variables in a single sample tends to alter the data-generating process of each component, thereby jeopardizing their unit roots. Further, it was proven that a single-sample approach creates a limited degree of freedom which eventually leads to the misrepresentation of HCE.
Publication Name: Journal of Health Economics
Subject: Health care industry
ISSN: 0167-6296
Year: 1998
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Health care expenditures and GDP: panel data unit root test results
Article Abstract:
The use of panel data has been proven effectual and highly accurate in analyzing the correlation between health care expenditure (HCE) and GDP of highly developed countries. By evaluating cross-country estimates of HCE and GDP in a number of time-variant relationships, it was shown that unit root tests do not exist, thereby generating negligible influence on numerical results. It was further established that panel regression data are not misspecified by representing HCE and GDP variables under a single sample.
Publication Name: Journal of Health Economics
Subject: Health care industry
ISSN: 0167-6296
Year: 1998
User Contributions:
Comment about this article or add new information about this topic:
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