Please use this identifier to cite or link to this item:
http://bura.brunel.ac.uk/handle/2438/14475
Title: | The relationship between healthcare expenditure and disposable personal income in the US states: a fractional integration and cointegration analysis |
Authors: | Caporale, GM Cunado, J Gil-Alana, L Gupta, R |
Keywords: | Healthcare expenditure;Income elasticity;US states;Fractional integration;Fractional cointegration |
Issue Date: | 2017 |
Publisher: | Springer Verlag |
Citation: | Empirical Economics, (2017) |
Abstract: | This study examines the relationship between healthcare expenditure and disposable income in the 50 US states over the period 1966-2009 using fractional integration and cointegration techniques. The degree of integration and non-linearity of both series are found to vary considerably across states, whilst the fractional cointegration analysis suggests that a long-run relationship exists between them in only 11 out of the 50 US states. The estimated long-run income elasticity of healthcare expenditure suggests that health care is a luxury good in these states. By contrast, the short-run elasticity obtained from the regressions in first differences is in the range (0,1) for most US states, which suggests that health care is a necessity good instead. The implications of these results for health policy are also discussed. |
URI: | http://bura.brunel.ac.uk/handle/2438/14475 |
ISSN: | 0377-7332 |
Appears in Collections: | Dept of Economics and Finance Research Papers |
Files in This Item:
File | Description | Size | Format | |
---|---|---|---|---|
FullText.pdf | 479.46 kB | Adobe PDF | View/Open |
Items in BURA are protected by copyright, with all rights reserved, unless otherwise indicated.