title: Systems GMM estimates of the health care spending and GDP relationship: a note.
abstract: This paper utilizes the systems generalized method of moments (GMM) [Arellano and Bover (1995) J Econometrics 68:29-51; Blundell and Bond (1998) J Econometrics 87:115-143], and panel Granger causality [Hurlin and Venet (2001) Granger Causality tests in panel data models with fixed coefficients. Mime'o, University Paris IX], to investigate the health care spending and gross domestic product (GDP) relationship for organisation for economic co-operation and development countries over the period 1960-2007. The system GMM estimates confirm that the contribution of real GDP to health spending is significant and positive. The panel Granger causality tests imply that a bi-directional causality exists between health spending and GDP. To this end, policies aimed at raising health spending will eventually improve the well-being of the population in the long run.
authors.affiliation: Department of Economics, Auckland University of Technology, Auckland, New Zealand. saten.kumar@aut.ac.nz
authors.forename: Saten
authors.initials: S
authors.lastname: Kumar
mesh_terms: D019049:Developed Countries / Q000706:statistics & numerical data*; D004470:Economics, Medical; D059066:Gross Domestic Product / Q000706:statistics & numerical data*; D005102:Health Expenditures / Q000706:statistics & numerical data*; D018803:Models, Economic