Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/80829
Authors: 
Hartwig, Jochen
Sturm, Jan-Egbert
Year of Publication: 
2012
Series/Report no.: 
KOF Working Papers, KOF Swiss Economic Institute, ETH Zurich 307
Abstract: 
Hartwig (2008) has presented empirical evidence that the difference between real wage growth and productivity growth at the macroeconomic level is a robust explanatory variable for deflated health-care expenditure growth in OECD countries. In this paper, we test whether this finding is robust to the inclusion of additional covariates, applying different versions of Extreme Bounds Analysis (EBA) to data for 33 OECD countries over the period 1970-2010. As far as it is statistically feasible, all macroeconomic and institutional determinants of health-care expenditure growth that have been suggested in the literature are included in the EBA. Furthermore, we analyse to what extent outliers in the data influence the results using an outlier-robust MM estimator. Our results confirm Hartwig's earlier finding. A number of additional both covariate- and outlier-robust determinants are also identified.
Subjects: 
Health-care expenditure
unbalanced growth
Extreme Bounds Analysis
MM estimator
OECD panel
JEL: 
C12
C23
I10
Persistent Identifier of the first edition: 
Document Type: 
Working Paper

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