@article {Gerdtham:2002:0003-6846:1679,
title = "New panel results on cointegration of international health expenditure and GDP",
journal = "Applied Economics",
parent_itemid = "infobike://routledg/raef",
publishercode ="routledg",
year = "2002",
volume = "34",
number = "13",
publication date ="2002-09-10T00:00:00",
pages = "1679-1686",
itemtype = "ARTICLE",
issn = "0003-6846",
eissn = "1466-4283",
url = "https://www.ingentaconnect.com/content/routledg/raef/2002/00000034/00000013/art00010",
doi = "doi:10.1080/00036840110116397",
author = "Gerdtham, U.-G. and L{\"o}thgren, M.",
abstract = "This article tests for existence of cointegration between health expenditure and GDP using data from 25 OECD countries for the period 1960-1997. The empirical modelling is based on a heterogeneous bivariate vector error correction panel model that allows for trending data as well as intercepts and trends in the cointegrating relations. Univariate country-by-country and panel unit root tests generally fail to reject the null of a unit root in the health expenditure and GDP variables. Country-by-country results based on the Johansen multivariate likelihood-based inference indicate somewhat mixed results on country-specific cointegration with a rank of one found for 12 countries and a rank of zero for the remaining 13 countries. Application of a new panel test for cointegration rank with higher power than the individual tests indicates that health expenditure and GDP are cointegrated around linear trends.",
}