@TechReport{iza:izadps:dp4851,
            	author={Baltagi, Badi H. and Moscone, Francesco},
            	title={Health Care Expenditure and Income in the OECD Reconsidered: Evidence from Panel Data},
            	year={2010},
	month={Mar},
            	institution={Institute of Labor Economics (IZA)},
            	address={Bonn},
            	type={IZA Discussion Paper},
            	number={4851},
            	url={https://www.iza.org/index.php/publications/dp4851},
	abstract={This paper reconsiders the long-run economic relationship between health care expenditure and income using a panel of 20 OECD countries observed over the period 1971-2004. In particular, the paper studies the non-stationarity and cointegration properties between health care spending and income. This is done in a panel data context controlling for both cross-section dependence and unobserved heterogeneity. Cross-section dependence is modelled through a common factor model and through spatial dependence. Heterogeneity is handled through fixed effects in a panel homogeneous model and through a panel heterogeneous model. Our findings suggest that health care is a necessity rather than a luxury, with an elasticity much smaller than that estimated in previous studies.},
	keywords={heterogeneous panels;cross section dependence;income elasticity;health expenditure;factor models},
            }