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Unit root properties of OECD health care expenditure and GDP data
Garry MacDonald1, Sandra Hopkins
1Department of Economics, Curtin University of Technology, Perth, Western Australia, Australia. macdonaldg@cbs.curtin.edu.au
Abstract:
This note reconsiders the unit root properties of health care expenditure (HCE) and gross domestic product (GDP) for OECD countries. The time-series properties of this data set has been much discussed in the literature with contrasting results from the application of a range of test procedures. We use a recently developed test to examine the relationship between the two variables. The results in this paper confirm earlier findings that when the data are considered as a panel, there is strong evidence of unit roots in both GDP and HCE data.
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