Stochastic Pattern of Health Care Spending: Evidence from Nonlinear Panel Data Analysis

(Pages 264-270)

Nermin Yasar*
Department of Foreign Trade, Cankaya University, Ankara/Turkey.
DOI: 10.35341/1923-7529.2021.19.27

Abstract:

This paper analyses the stochastic pattern of health care spending for 188 countries around the world which are categorized into four groups based on the World Bank income categories. The main motivation of this article is to evaluate whether the stochastic features of total health care expenditure varies if decomposed into private and public health care consumption. To achieve this goal, in addition to conventional empirical methods, latterly developed panel stationarity approaches are employed for both linear and nonlinear regression processes. Our results demonstrate that allowing for cross-section dependency between series and nonlinearity in the estimation process may lead to more often rejection of the null hypothesis of unit root for all series in panel data set.


Keywords:

Health Care Consumption, Panel Unit Root Test, Panel Cross Section Dependence, Nonlinearity, Heterogeneous Panel Unit Root.


JEL Classification:

C10, C23, I10.


How to Cite:

Nermin Yasar. Stochastic Pattern of Health Care Spending: Evidence from Nonlinear Panel Data Analysis. [ref]: vol.19.2021. available at: https://refpress.org/ref-vol19-a27/


Licensee REF Press
This is an open access article licensed under the terms of the Creative Commons Attribution Non-Commercial License (http://creativecommons.org/licenses/by-nc/3.0/) which permits unrestricted, non-commercial use, distribution and reproduction in any medium, provided the work is properly cited.