Unit root properties of OECD health care expenditure and GDP data.
This note reconsiders the unit root properties of health care expenditure (HCE) and gross domestic product (GDP) for OECD countries. The time-series properties of this data set has been much discussed in the literature with contrasting results from the application of a range of test procedures. We use a recently developed test to examine the relationship between the two variables. The results in this paper confirm earlier findings that when the data are considered as a panel, there is strong evidence of unit roots in both GDP and HCE data.
MacDonald
Garry
G
Department of Economics, Curtin University of Technology, Perth, Western Australia, Australia. macdonaldg@cbs.curtin.edu.au
Hopkins
Sandra
S
D003431:Cross-Cultural Comparison; D003627:Data Interpretation, Statistical; D019049:Developed Countries / Q000191:economics*; D005060:Europe; D005062:European Union; D005102:Health Expenditures / Q000706:statistics & numerical data*; D006801:Humans; D017059:Models, Econometric; D013997:Time Factors