Abstract
Per capita real income on the demand-side and technological change, proxied by total R&D and health R&D spending, on the supply-side are hypothesized as major drivers of per capita real health care expenditure in the US during the 1960-1997 period. The findings are robust to a battery of unit root and cointegration tests. They support the Newhouse [Journal of Economic Perspectives 6 (1992) 3] conjecture that technological change is a major escalator of health care expenditure and confirm a significant and stable long-run relationship among per capita real health care expenditure, per capita real income and broad-based R&D expenditures. Policy implications are noted.
| Original language | English |
|---|---|
| Pages (from-to) | 147-159 |
| Number of pages | 13 |
| Journal | Journal of Health Economics |
| Volume | 21 |
| Issue number | 1 |
| DOIs | |
| State | Published - 2002 |
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All Science Journal Classification (ASJC) codes
- Economics and Econometrics
Cite this
Technology as a 'major driver' of health care costs : A cointegration analysis of the Newhouse conjecture. / Okunade, Albert A.; Murthy, Vasudeva N. R.
In: Journal of Health Economics, Vol. 21, No. 1, 2002, p. 147-159.Research output: Contribution to journal › Article
}
TY - JOUR
T1 - Technology as a 'major driver' of health care costs
T2 - A cointegration analysis of the Newhouse conjecture
AU - Okunade, Albert A.
AU - Murthy, Vasudeva N. R.
PY - 2002
Y1 - 2002
N2 - Per capita real income on the demand-side and technological change, proxied by total R&D and health R&D spending, on the supply-side are hypothesized as major drivers of per capita real health care expenditure in the US during the 1960-1997 period. The findings are robust to a battery of unit root and cointegration tests. They support the Newhouse [Journal of Economic Perspectives 6 (1992) 3] conjecture that technological change is a major escalator of health care expenditure and confirm a significant and stable long-run relationship among per capita real health care expenditure, per capita real income and broad-based R&D expenditures. Policy implications are noted.
AB - Per capita real income on the demand-side and technological change, proxied by total R&D and health R&D spending, on the supply-side are hypothesized as major drivers of per capita real health care expenditure in the US during the 1960-1997 period. The findings are robust to a battery of unit root and cointegration tests. They support the Newhouse [Journal of Economic Perspectives 6 (1992) 3] conjecture that technological change is a major escalator of health care expenditure and confirm a significant and stable long-run relationship among per capita real health care expenditure, per capita real income and broad-based R&D expenditures. Policy implications are noted.
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U2 - 10.1016/S0167-6296(01)00122-9
DO - 10.1016/S0167-6296(01)00122-9
M3 - Article
VL - 21
SP - 147
EP - 159
JO - Journal of Health Economics
JF - Journal of Health Economics
SN - 0167-6296
IS - 1
ER -