Are Health Expenditures and GDP Characterized by Asymmetric Behaviour? Evidence from 11 OECD Countries

Posted: 10 Jun 2012

See all articles by Paresh Kumar Narayan

Paresh Kumar Narayan

Deakin University - School of Accounting, Economics and Finance

Date Written: 2009

Abstract

In this article, we examine whether per-capita health expenditures and per-capita GDP for 11 OECD countries can be characterized by asymmetric behaviour. We achieve this goal by using the nonparametric Triples test suggested by Randles et al. (1980). We examine two forms of asymmetries, namely deepness and steepness. Our main finding is that for 6 out of 11 countries, namely for the USA, the UK, Japan, Spain, Finland and Iceland, either per-capita health expenditures or per-capita GDP are characterized by asymmetric behaviour. This finding to some extent casts doubt on those studies that model the relationship between health and GDP using unit-root and cointegration tests that assume symmetric disturbances.

Suggested Citation

Narayan, Paresh Kumar, Are Health Expenditures and GDP Characterized by Asymmetric Behaviour? Evidence from 11 OECD Countries (2009). Applied Economics, Vol. 41, No. 531-536, 2009, Available at SSRN: https://ssrn.com/abstract=2080431

Paresh Kumar Narayan (Contact Author)

Deakin University - School of Accounting, Economics and Finance ( email )

221 Burwood Highway
Burwood, Victoria 3215
Australia

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