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.
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This paper is a revised version of a paper presented at the 2011 Academy of Economics and Finance annual meeting on February 11, 2011 in Jacksonville, Florida.
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Appendix A
Appendix A
Per capita U.S. health care expenditure(in 1982–84 dollars)
Log of per capita U.S. health care expenditure
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Murthy, V.N.R. A Time-Series Investigation of the U.S. Real Health Expenditure: Evidence from Nonlinear Unit Root Tests. Int Adv Econ Res 18, 429–438 (2012). https://doi.org/10.1007/s11294-012-9374-z
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DOI: https://doi.org/10.1007/s11294-012-9374-z