Abstract
This paper explores convergence of real health expenses across the Indian states. The new panel convergence methodology developed by Phillips and Sul (Econometrica 75:1771–1855, 2007) is employed. The empirical findings suggest that these states form distinct convergent clubs, exhibiting considerable heterogeneity in the underlying health expenses patterns.
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Notes
In our application with annual data, the smoothing parameter λ is set equal to 100.
Extensive Monte Carlo simulations conducted by Phillips and Sul (2007) show that r = 0.3 is satisfactory in terms of both size and power.
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Acknowledgments
We thank Donggyu Sul for making the Gauss code available to us. A sample code can be downloaded from Donggyu Sul’s homepage: http://homes.eco.auckland.ac.nz/dsul013/. The usual disclaimer applies.
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Apergis, N. Health Expenses: Evidence from the Club Clustering Approach. Int Adv Econ Res 19, 399–407 (2013). https://doi.org/10.1007/s11294-013-9408-1
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DOI: https://doi.org/10.1007/s11294-013-9408-1