Health care expenditure and GDP: are they broken stationary?
In this paper, we analyse the stationarity of the real per capita health care expenditure (HCE) and real per capita GDP for a sample of OECD countries, allowing for the presence of multiple structural breaks. One novelty of the paper is that it permits the presence of structural breaks that affect both the level and the slope of the time series. After the cross-section dependence is accounted for, we have found that these variables can be characterised as stationary processes evolving around a broken trend.
Carrion-i-Silvestre
Josep Lluís
JL
Anàlisi Quantitativa Regional Research Group, Parc Científic de Barcelona, Universitat de Barcelona, 690 Avd. Diagonal, 08034 Barcelona, Spain. carrion@ub.edu
D003906:Developing Countries / Q000191:economics*; D005102:Health Expenditures / Q000706:statistics & numerical data / Q000639:trends*