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

2009-01-01
Erdil, Erkan
Yetkiner, I. Hakan
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.

Citation Formats
E. Erdil and I. H. Yetkiner, “The Granger-causality between health care expenditure and output: a panel data approach,” APPLIED ECONOMICS, vol. 41, no. 4, pp. 511–518, 2009, Accessed: 00, 2020. [Online]. Available: https://hdl.handle.net/11511/39001.