Much of the work which has led to a widely held view that the income elasticity of health care spending exceeds one has been based on international cross-section data, or on pooled cross-sections and time series. In this paper we re-examine this view in the context of long-run equilibrium relationships between non-stationary time series, possibly including autonomous trends. Our results east doubt upon the usefulness of pooling and upon the notion of an elasticity above one.

Additional Metadata
Keywords Cointegration, Health care expenditure, Income elasticity, Pooling
Persistent URL dx.doi.org/10.1016/S0167-6296(96)00534-6
Journal Journal of Health Economics
Citation
Blomqvist, Å, & Carter, R.A.L. (R. A.L.). (1997). Is health care really a luxury?. Journal of Health Economics, 16(2), 207–229. doi:10.1016/S0167-6296(96)00534-6