Abstract
This paper contributes to the literature on health expenditure studies by applying the non-linear unit root tests formulated recently by Kapetanios et al. (Journal of Econometrics 112(2):359-79, 2003) to empirically test whether the U. S. real health expenditure time-series are non-stationary or non-linear and globally stationary during a relatively long period from 1965 to 2009. For comparison purposes, it also reports the results of a battery of traditional linear unit root tests and the Lee and Strazicich's minimum LM unit root (Review of Economics and Statistics 85(4):1082-1089, 2003) test for structural breaks. The empirical findings of the paper show that in the United States during the period under investigation, the real health expenditure time-series are non-stationary in levels. Policy implications of the empirical findings are discussed.
| Original language | English |
|---|---|
| Pages (from-to) | 429-438 |
| Number of pages | 10 |
| Journal | International Advances in Economic Research |
| Volume | 18 |
| Issue number | 4 |
| DOIs | |
| State | Published - Dec 2012 |
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All Science Journal Classification (ASJC) codes
- Economics, Econometrics and Finance(all)
- Economics and Econometrics
Cite this
A Time-Series Investigation of the U.S. Real Health Expenditure : Evidence from Nonlinear Unit Root Tests. / Murthy, Vasudeva N. R.
In: International Advances in Economic Research, Vol. 18, No. 4, 12.2012, p. 429-438.Research output: Contribution to journal › Article
}
TY - JOUR
T1 - A Time-Series Investigation of the U.S. Real Health Expenditure
T2 - Evidence from Nonlinear Unit Root Tests
AU - Murthy, Vasudeva N. R.
PY - 2012/12
Y1 - 2012/12
N2 - This paper contributes to the literature on health expenditure studies by applying the non-linear unit root tests formulated recently by Kapetanios et al. (Journal of Econometrics 112(2):359-79, 2003) to empirically test whether the U. S. real health expenditure time-series are non-stationary or non-linear and globally stationary during a relatively long period from 1965 to 2009. For comparison purposes, it also reports the results of a battery of traditional linear unit root tests and the Lee and Strazicich's minimum LM unit root (Review of Economics and Statistics 85(4):1082-1089, 2003) test for structural breaks. The empirical findings of the paper show that in the United States during the period under investigation, the real health expenditure time-series are non-stationary in levels. Policy implications of the empirical findings are discussed.
AB - This paper contributes to the literature on health expenditure studies by applying the non-linear unit root tests formulated recently by Kapetanios et al. (Journal of Econometrics 112(2):359-79, 2003) to empirically test whether the U. S. real health expenditure time-series are non-stationary or non-linear and globally stationary during a relatively long period from 1965 to 2009. For comparison purposes, it also reports the results of a battery of traditional linear unit root tests and the Lee and Strazicich's minimum LM unit root (Review of Economics and Statistics 85(4):1082-1089, 2003) test for structural breaks. The empirical findings of the paper show that in the United States during the period under investigation, the real health expenditure time-series are non-stationary in levels. Policy implications of the empirical findings are discussed.
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U2 - 10.1007/s11294-012-9374-z
DO - 10.1007/s11294-012-9374-z
M3 - Article
AN - SCOPUS:84870848667
VL - 18
SP - 429
EP - 438
JO - International Advances in Economic Research
JF - International Advances in Economic Research
SN - 1083-0898
IS - 4
ER -