This paper examines stationarity and cointegration of health expenditure and GDP, for a sample of 21 OECD countries using data for the period 1960-1997, by applying a test battery that allows robust inference to be made on the stationarity and cointegration issue. Trend stationarity and no-cointegration are tested using new country-by-country and panel tests, not previously applied in this sett...

This paper aims to investigate stochastic properties of the consumption-income ratios in 11 Central and Eastern European (CEE) countries. We use the heterogeneous panel unit root tests those account for cross-sectional dependence and the Modified Augmented Dickey-Fuller unit root test over the period March 1997-September 2012 in quarterly data set. We find the strong mean-reversion in the consu...

This study investigates the relationship between economic conditions and health. Previous studies have estimated that they have a significantly negative correlation. However, there is a concern that mortality rates are non-stationary series, with which a chance of spurious correlation exhibits. By taking first difference on regressors and conducting unit-root tests for panel data, it shows some...

In this paper, we estimate a health care demand function for 18 OECD countries for the period 1972-1995. We consider a demand side approach where health expenditure depend on per capita GDP and the relative price of health care. We use panel data unit root and stationarity tests to characterize our data. Then, we test cointegration between our variables with Kao[16] panel data cointegration tes...

This paper extends the cross sectionally augmented panel unit root test proposed by Pesaran (2007) to the case of a multifactor error structure. The basic idea is to exploit information regarding the unobserved factors that are shared by other time series in addition to the variable under consideration. Importantly, our test procedure only requires specification of the maximum number of factors...

This paper studies asymptotic and finite sample properties of statistics devised to test for the null of no cointegration in nonstationary pooled time series panels as both the cross section and time series dimensions grow large. The paper finds that for panels with homogenous long run parameters, the spurious regression coefficient estimates become consistent even under the null of no cointegr...

In this paper a Bayesian approach to unit root testing for panel data models is proposed based on the comparison of stationary autoregressive models with and without individual deterministic trends, with their counterpart models with a unit autoregressive root. This is done under cross-sectional dependence among the units of the panel. Simulation experiments are conducted with the aim to assess...