Abstract：
:This paper investigates the relationship between health care expenditure, income, and other factors that are not related to income for China with pooled cross-section and time series data. To study the stationarity property of these variables, we use panel Lagrange Multiplier (LM) unit root tests that allow for structural changes. To perform the LM unit root tests, we employ finite-sample critical values derived through the bootstrap method, instead of relying on the critical values from the asymptotic normal distribution. An important finding based on the estimated panel cointegrated regressions is that the government budget deficits have a significant long-run impact on China's health care expenditure. This provides supportive evidence on the differences between rich and poor areas in China's health care financing policy, and the substantial disparities in health service coverage in China.
journal_name
J Health Econjournal_title
Journal of health economicsauthors
Chou WLdoi
10.1016/j.jhealeco.2006.12.002subject
Has Abstractpub_date
2007-07-01 00:00:00pages
682-98issue
4eissn
0167-6296issn
1879-1646pii
S0167-6296(06)00139-1journal_volume
26pub_type
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