, Volume 41, Issue 2, pp 115-122
Date: 14 Nov 2012

The Wealth-Health Nexus: New Global Evidence

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Using a world sample of countries, this paper re-examines the U-shaped relationship between per capita GDP (wealth) and life expectancy at birth (health). Since cross-sectional dependence across countries is detected, second-generation panel unit root and cointegration tests are employed. All the variables are found to be integrated in one order as well as cointegrated. Various quadratic specifications are also employed and the hypothesis is confirmed.

I would like to express my sincere thanks to Thomas F. Rutherford and Massimo Filippini, John Virgo and an anonymous referee for their comments on an earlier version of this paper. Errors, if any, are the author’s own only.