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 (US) |
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Pages (from-to) | 429-438 |
Number of pages | 10 |
Journal | International Advances in Economic Research |
Volume | 18 |
Issue number | 4 |
DOIs | |
State | Published - Dec 1 2012 |
All Science Journal Classification (ASJC) codes
- Economics and Econometrics
- Economics, Econometrics and Finance(all)