The Granger-causality between health care expenditure and output: a panel data approach

This study investigates the Granger-causality relationship between real per capita GDP and real per capita health care expenditure by employing a large macro panel data set with a VAR representation. The findings verify that the dominant type of Granger-causality is bidirectional. In instances that we found one-way causality, the pattern is not homogenous: Our analyses show that one-way causality generally runs from income to health in low- and middle-income countries whereas the reverse holds for high-income countries. Accordingly, care must be paid in defining the dependent and independent variables when specifying the determinants of health care expenditure.


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Ocal, N (Informa UK Limited, 2006-05-20)
This paper examines the role of the Office for National Statistics Composite Longer Leading Indicator, in nonlinear business cycle models for growth rates of UK real gross domestic product (GDP). These models are of the smooth transition regression class, with the transition between "regimes'' expressed as functions of lagged changes in the leading indicator. In general, evidence is found of business cycle regime asymmetries, with increases and decreases in the leading indicator implying distinct responses ...
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Ozmen, E (Informa UK Limited, 2005-07-15)
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Citation Formats
E. Erdil, “The Granger-causality between health care expenditure and output: a panel data approach,” APPLIED ECONOMICS, pp. 511–518, 2009, Accessed: 00, 2020. [Online]. Available: