The Impact of GDP on Health Care Expenditure: The Case of Italy (1982–2009)

Fedeli, Silvia

doi:10.1007/s11205-014-0703-x

Cited by 21 publications

(14 citation statements)

References 57 publications

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“…Per capita GDP is also found to have positive effects on per capita health expenditure. The results are consistent with the findings of Fedeli [ 68 ], Erçelik [ 69 ], and Bayar et al [ 70 ], who also found that an increase in GDP significantly causes the per capita health expenditures to increase over time. Moreover, the results also correspond with the findings of Rahman et al [ 71 ], who revealed that an increase in GDP improves population’s health status in SAARC-ASEAN region.…”

Section: Discussionsupporting

confidence: 92%

The health consequences of civil wars: evidence from Afghanistan

2023

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This study examines the effects of long-run civil wars on healthcare, which is an important component of human capital development and their causality nexus in Afghanistan using the MVAR (modified vector autoregressive) approach and the Granger non-causality model covering data period 2002Q3-2020Q4. The primary results support a significant long-run relationship between variables, while the results of the MVAR model indicate the per capita cost of war, per capita GDP, and age dependency ratio have significantly positive impacts on per capita health expenditures, whereas child mortality rate and crude death rate have negative impacts. The results of the Granger non-causality approach demonstrate that there is a statistically significant bidirectional causality nexus between per capita health expenditure, per capita cost of war, per capita GDP, child mortality rate, crude death rate, and age dependency ratio, while it also supports the existence of strong and significant interconnectivity and multidimensionality between per capita cost of war and per capita health expenditure, with a significantly strong feedback response from the control variables. Important policy implications sourced from the key findings are also discussed.

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Section: Discussionsupporting

confidence: 92%

The health consequences of civil wars: evidence from Afghanistan

2023

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“…They found causality flowing from public spending to economic growth (hence favoring the Keynesian hypothesis) in UK and Ireland, while Wagner's hypothesis held in Greece in short run. Studies that looked at the Italian case include Magazzino (2012), Barra et al (2015) and Fedeli (2015). They found evidence favoring the Wagner's hypothesis in short run.…”

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confidence: 99%

Wagner’s law and governments’ functions: granularity matters

Jalles

2019

JES

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Purpose The purpose of this paper is to assess the responses of different categories of government spending to changes in economic activity. In other words, the authors empirically revisit the validation of the Wagner’s law in a sample of 61 advanced and emerging market economies between 1995 and 2015. Design/methodology/approach The authors do so via panel data instrumental variables and time-series SUR approaches. Findings Evidence from panel data analyses show that the Wagner’s law seems more prevalent in advanced economies and when countries are growing above potential. However, such result depends on the government spending category under scrutiny and the functional form used. Country-specific analysis revealed relatively more cases satisfying Wagner’s proposition within the emerging markets sample. The authors also found evidence of counter-cyclicality in several spending items. All in all, the Wagner’s regularity seems more the exception than the norm. Originality/value While in the literature on the size of the public sector with respect to a country’s level of economic development has received much attention, the authors make several novel contributions: since some economists criticized Wagner’s law because of ambiguity of the measurement of government expenditure (Musgrave, 1969), instead of looking at aggregate public expenditures, the authors go much more granular into the different functions of government (to this end, the authors use the Classification of Functions of the Government nomenclature). The authors check the validity of the Law via an instrumental variable approach in a panel setting; after that, the authors take into account the phase of the business cycle using a new filtering technique to compute potential GDP (output gap); then, the authors cross-check the baseline results by considering alternative functional form specifications of the Law; and finally, the authors look at individual countries one at the time via SUR analysis.

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“…İtalya ekonomisinin 1982-2009 dönemi arasındaki yıllık veri seti ile bölgesel olarak Wagner yasasını sınayan Fedeli (2015) çalışmasında kişi başına düşen bölgesel sağlık harcamaları ve kişi başına düşen bölgesel gayrisafi yurt içi hasıla değişkenlerini kullanmıştır. Panel eşbütünleşme yöntemi ile gerçekleştilen araştırma bulguları İtalya'da 1982-2009 döneminde Wagner yasasının geçerli olduğunu göstermiştir.…”

Section: Wagner Yasası Ekonometrik Literatür öZeti: Türkiye öZeliunclassified

Relationship between Income and Functional Public Expenditures: Sub-Regional Level

Karakurt

Okutan

2018

International Journal of Public Finance

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The aim of this study is to determine the direction of the relationship between income and public expenditures in the 2005-2014 period of the Turkish economy at a sub-regional level. While Gross Domestic Product per capita was preferred as income criteria, the functional classification was used in public expenditures. In modeling variables, the specification developed by Peacock and Wiseman to test Wagner's law was used. The Regional unemployment rate was added to the right-hand side of the model as a control variable. Hypothesis tests were performed on the predicted regression models, and estimators were preferred to produce robust standard errors that would increase the effectiveness of the models. After interpreting the elasticity coefficients obtained from estimating the models, the causality relationship between income and public expenditures was determined by applying Dumitrescu and Hurlin panel causality analysis method.When the elasticity coefficients obtained from the models were examined under the model proposed by Peacock and Wiseman, it was found that the criteria that the elasticity coefficient should be greater than one were not met in all of the models. According to Dumitrescu and Hurlin panel causality test results, which were conducted to determine causality between six different public expenditures and gross domestic product, there was a two-JEL classification: C33, EO, E62, H50

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The Impact of GDP on Health Care Expenditure: The Case of Italy (1982–2009)

Cited by 21 publications

References 57 publications

The health consequences of civil wars: evidence from Afghanistan

The health consequences of civil wars: evidence from Afghanistan

Wagner’s law and governments’ functions: granularity matters

Relationship between Income and Functional Public Expenditures: Sub-Regional Level

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