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


ERDİL E. , Yetkiner I. H.

APPLIED ECONOMICS, cilt.41, sa.4, ss.511-518, 2009 (SSCI İndekslerine Giren Dergi) identifier identifier

  • Cilt numarası: 41 Konu: 4
  • Basım Tarihi: 2009
  • Doi Numarası: 10.1080/00036840601019083
  • Dergi Adı: APPLIED ECONOMICS
  • Sayfa Sayıları: ss.511-518

Özet

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.