Do health expenditures 'catch-up'? Evidence from OECD countries.

Abstract:

:In this paper, we examine the 'catch-up' hypothesis, that is, whether or not per capita health expenditures of the UK, Canada, Japan, Switzerland, and Spain converge to the per capita health expenditures of the USA over the period 1960-2000. We propose a framework to examine convergence of health expenditures and use recent developments in unit root testing, namely the Lagrange multiplier univariate and panel approaches that allow for at most two structural breaks. Our main finding is that while univariate and panel tests that do not incorporate structural breaks fail to find evidence of convergence, univariate and panel LM tests that allow for structural breaks find strong evidence of convergence of per capita health expenditures of the UK, Canada, Japan, Switzerland, and Spain to that of the USA.

journal_name

Health Econ

journal_title

Health economics

authors

Narayan PK

doi

10.1002/hec.1196

subject

Has Abstract

pub_date

2007-10-01 00:00:00

pages

993-1008

issue

10

eissn

1057-9230

issn

1099-1050

journal_volume

16

pub_type

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