Resiliency of healthcare expenditure to income shock: Evidence from dynamic heterogeneous panels.

ABSTRACT: Using the World Bank data over the period of 1960-2019, this study aims at estimating the resiliency of health expenditures against gross domestic product (GDP). Long-run and short-run elasticities are calculated using the type of panel time series methods that are exclusively designed for dynamic heterogeneous panels: Mean Group, Pooled Mean Group, and Dynamic Fixed Effects estimators. These methods permit better estimations of elasticity with considerable heterogeneity across the 177 countries included in this study. Along with a standard elasticity estimation, this study estimates country-specific long-run and short-run elasticities along with error correction components. The study finds that the long-run elasticity of income is very close to unity, but short-run coefficients are insign

SUBMITTER: Shimul SN 

PROVIDER: S-EPMC10027743 | biostudies-literature | 2023

REPOSITORIES: biostudies-literature