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

Date

2009-01-01

Author

Erdil, Erkan

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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.

Subject Keywords

Economics and Econometrics

URI

https://hdl.handle.net/11511/39001

Journal

APPLIED ECONOMICS

DOI

https://doi.org/10.1080/00036840601019083

Collections

Department of Economics, Article

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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: https://hdl.handle.net/11511/39001.