A Time-Series Investigation of the U.S. Real Health Expenditure: Evidence from Nonlinear Unit Root Tests
Vasudeva N. R. Murthy
This paper contributes to the literature on health expenditure studies by applying the non-linear unit root tests formulated recently by Kapetanios et al. (Journal of Econometrics 112(2):359-79, 2003) to empirically test whether the U. S. real health expenditure time-series are non-stationary or non-linear and globally stationary during a relatively long period from 1965 to 2009. For comparison purposes, it also reports the results of a battery of traditional linear unit root tests and the Lee and Strazicich's minimum LM unit root (Review of Economics and Statistics 85(4):1082-1089, 2003) test for structural breaks. The empirical findings of the paper show that in the United States during the period under investigation, the real health expenditure time-series are non-stationary in levels. Policy implications of the empirical findings are discussed.
International Advances in Economic Research
Unit root tests
Unit root
Structural breaks
Long period
Economics, Econometrics and Finance(all)
Murthy, V. N. R. (2012). A Time-Series Investigation of the U.S. Real Health Expenditure: Evidence from Nonlinear Unit Root Tests. International Advances in Economic Research, 18(4), 429-438. https://doi.org/10.1007/s11294-012-9374-z
A Time-Series Investigation of the U.S. Real Health Expenditure : Evidence from Nonlinear Unit Root Tests. / Murthy, Vasudeva N. R.
In: International Advances in Economic Research, Vol. 18, No. 4, 12.2012, p. 429-438.
Murthy, VNR 2012, 'A Time-Series Investigation of the U.S. Real Health Expenditure: Evidence from Nonlinear Unit Root Tests', International Advances in Economic Research, vol. 18, no. 4, pp. 429-438. https://doi.org/10.1007/s11294-012-9374-z
Murthy VNR. A Time-Series Investigation of the U.S. Real Health Expenditure: Evidence from Nonlinear Unit Root Tests. International Advances in Economic Research. 2012 Dec;18(4):429-438. https://doi.org/10.1007/s11294-012-9374-z
Murthy, Vasudeva N. R. / A Time-Series Investigation of the U.S. Real Health Expenditure : Evidence from Nonlinear Unit Root Tests. In: International Advances in Economic Research. 2012 ; Vol. 18, No. 4. pp. 429-438.
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