Journal ArticleDOI
Is health care a necessity or a luxury? Pooled estimates of income elasticity from US state-level data
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TLDR
The principal findings are that health care expenditures and incomes at the state level are non-stationary and cointegrated, and the income elasticity of health care, even at the aggregate level, is a necessity good.Abstract:
This paper provides new evidence on the income elasticity of health care by combining stationarity and cointegration tests of health care expenditure and incomes with estimates of the cointegrating relationship between them. A recently updated dataset of health care expenditures and disposable personal income for the US states for the years 1966–1998 is used. The principal findings are that health care expenditures and incomes at the state level are non-stationary and cointegrated. Dynamic OLS cointegrating regressions of the pooled state time series estimate the income elasticity of health care at 0.817 to 0.844, well below unity, confirming that health care expenditure, even at the aggregate level, is a necessity good.read more
Citations
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Health Care Expenditure and Income in the OECD Reconsidered: Evidence from Panel Data
TL;DR: In this paper, the authors consider the long-run economic relationship between health care expenditure and income using a panel of 20 OECD countries observed over the period 1971-2004, and find that health care is a necessity rather than a luxury.
Journal ArticleDOI
What Drives Health Care Expenditure? Baumol's Model of 'Unbalanced Growth' Revisited
TL;DR: This paper revisits Baumol's model of 'unbalanced growth', showing that the latter offers a ready explanation for the observed inexorable rise in health care expenditure and tested empirically using data from a panel of 19 OECD countries.
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Does environmental quality influence health expenditures? Empirical evidence from a panel of selected OECD countries
TL;DR: In this paper, the authors examined the role of environmental quality in determining per capita health expenditures and found that carbon dioxide emissions had a statistically significant positive impact on health expenditures in eight OECD countries.
Report SeriesDOI
Public Spending on Health and Long-term Care
TL;DR: In this paper, the authors proposed a new set of public health and long-term care expenditure projections till 2060, following up on the previous set of projections published in 2006, which disentangles health from longterm healthcare expenditure as well as the demographic from the non-demographic drivers, and refines the previous methodology by better identifying the underlying determinants of health and BRIICS countries.
Journal ArticleDOI
Health expenditures, health outcomes and the role of good governance
TL;DR: Government health spending has a significant effect on reducing infant and under-5 child mortality and the size of the coefficient depends on the level of good governance achieved by the country, indicating that good governance increases the effectiveness of health spending.
References
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James H. Stock,Mark W. Watson +1 more
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