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.
UR - http://www.scopus.com/inward/record.url?scp=0036156477&partnerID=8YFLogxK
UR - http://www.scopus.com/inward/citedby.url?scp=0036156477&partnerID=8YFLogxK
U2 - 10.1016/S0167-6296(01)00122-9
DO - 10.1016/S0167-6296(01)00122-9
M3 - Article
C2 - 11852912
AN - SCOPUS:0036156477
VL - 21
SP - 147
EP - 159
JO - Journal of Health Economics
JF - Journal of Health Economics
SN - 0167-6296
IS - 1
ER -