%0 Report
        %A Baltagi, Badi H.
%A Moscone, Francesco
        %T Health Care Expenditure and Income in the OECD Reconsidered: Evidence from Panel Data
        %D 2010
        %8 2010 Mar
        %I Institute of Labor Economics (IZA)
        %C Bonn
        %7 IZA Discussion Paper
        %N 4851
        %U https://www.iza.org/publications/dp4851
        %X 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.
        %K heterogeneous panels
%K cross section dependence
%K income elasticity
%K health expenditure
%K factor models