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This study estimates the Nigerian import demand function with the view to finding the degree of responsiveness of imports to domestic product prices while controlling for exchange rate (EXR), gross domestic product and foreign reserves. To refine inference about stationarity in the presence of structural breaks, the study employed the Lee and Strazicich and Zivot‐Andrews stationarity tests, which all confirmed that the series are integrated of order one. Both the ARDL bound testing for cointegration and the Johansen cointegration approach all confirmed long‐run relationship among the variables. From the cointegrating regression estimates using the Saikkonen and Stock‐Watson Dynamic Ordinary Least Square procedure and the Phillip and Hansen's Fully Modified Ordinary Least Square technique, we found that imports in Nigeria are domestic inflation or cross elastic in the long run. The study, however, found import demand to be inelastic to EXR and income, same as to foreign exchange reserves. The sensitivity of these estimates was confirmed with the ARDL procedure suggested by Peseran, Shin and Smith. With the Granger non‐causality test using the Toda‐Yamamoto's technique, we found unidirectional causality running from domestic inflation to import demand, implying that previous values of domestic inflation offer additional information to explaining future values of aggregate import demand. Diversification of domestic production as well as other policies directed at enhancing price and quality competiveness of domestic products were recommended.

This study investigates the effect of public health expenditure and the everdepreciating exchange rate on household health expenditure while controlling for gross domestic product per capita and consumer price index. We determined the stationarity properties of the series using the Lee and Strazicich, Economic Bulletin, 2013, 33, 2483-2492 and the Augmented Dickey Fuller test to confirm that none of the variables was integrated at an order higher than one. The ARDL bound test for cointegration and the Johansen procedure both confirmed the existence of long-run relationship among the series. From the Autoregressive Distributed Lag Model results, study reveals that public health expenditure has decreasing impact on the incidence of household health expenditure in both the short-and long-run. Household health expenditure is also found to be exchange rate elastic in the long-run. The VECM Granger causality result reveals a long-run unidirectional causality running from public health expenditure, exchange rate, income and domestic prices to household health expenditure. Our study suggests fiscal expansion for health, exchange rate appreciation measures and health risk protection for both the formal and informal sectors.