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Unit root properties of OECD health care expenditure and GDP data
Author(s) -
MacDonald Garry,
Hopkins Sandra
Publication year - 2002
Publication title -
health economics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.55
H-Index - 109
eISSN - 1099-1050
pISSN - 1057-9230
DOI - 10.1002/hec.657
Subject(s) - unit root , unit root test , gross domestic product , unit (ring theory) , economics , panel data , econometrics , test (biology) , health care , data set , statistics , mathematics , cointegration , macroeconomics , economic growth , paleontology , mathematics education , biology
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. Copyright © 2001 John Wiley & Sons, Ltd.