TY  - RPRT
        AU  - Baltagi, Badi H.
AU  - Moscone, Francesco
        TI  - Health Care Expenditure and Income in the OECD Reconsidered: Evidence from Panel Data
        PY  - 2010/Mar/
        PB  - Institute of Labor Economics (IZA)
        CY  - Bonn
        T2  - IZA Discussion Paper
        IS  - 4851
        UR  - https://www.iza.org/index.php/publications/dp4851
        AB  - 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.
        KW  - heterogeneous panels
KW  - cross section dependence
KW  - income elasticity
KW  - health expenditure
KW  - factor models
        ER  -