Detalle Publicación

ARTÍCULO
The relationship between healthcare expenditure and disposable personal income in the US states: a fractional integration and cointegration analysis
Título de la revista: EMPIRICAL ECONOMICS
ISSN: 0377-7332
Volumen: 55
Número: 3
Páginas: 913 - 935
Fecha de publicación: 2018
Lugar: WOS
Resumen:
This study examines the relationship between healthcare expenditure and disposable income in the 50 US states over the period 1966-2009 using fractional integration and cointegration techniques. The degree of integration and nonlinearity of both series are found to vary considerably across states, while the fractional cointegration analysis suggests that a long-run relationship exists between them in only 11 out of the 50 US states. The estimated long-run income elasticity of healthcare expenditure suggests that health care is a luxury good in these states. By contrast, the short-run elasticity obtained from the regressions in first differences is in the range (0, 1) for most US states, which suggests that health care is a necessity good instead. The implications of these results for health policy are also discussed.