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Empirical Economics

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01.02.2021

Has healthcare expenditure converged across Australian states and territories?

verfasst von: Kris Ivanovski, Sefa Awaworyi Churchill

Erschienen in: Empirical Economics | Ausgabe 6/2021

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Abstract

We employ the Phillips and Sul (Econometrica 75(6):1771–1855, 2007) methodology to test for the convergence of healthcare expenditure across Australian states and territories. We utilise a nonlinear model that allows for heterogeneity and transitional dynamics and consider the convergence patterns of total, government and non-government healthcare expenditures. The results display varying degrees of convergence, specifically in government and non-government expenditures. The formation of convergence and non-convergence clusters suggests that health policies need not be uniform across all Australian states and territories but within convergent clubs. As a result, healthcare policies need to be implemented at the state level rather than at the national level.

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While hospitals are administered and funded by the states and territories, they also receive specific funding support from the Australian Government (AIHW 2016).

Data & figure tables: Health expenditure Australia: 1996–97 to 2016–2017 (URL: https://www.aihw.gov.au/reports-statistics/health-welfare-overview/health-welfare-expenditure/data).

State and territory population statistics are sourced from the ABS, Australian Demographic Statistics (URL: http://www.abs.gov.au/Population).

Since the algorithm tends to over-estimate the number of convergence clubs, PS recommend merging the cluster using the same test. "Appendix A" provides a brief explanation of the four-step process.

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Titel: Has healthcare expenditure converged across Australian states and territories?
verfasst von: Kris Ivanovski
Sefa Awaworyi Churchill
Publikationsdatum: 01.02.2021
Verlag: Springer Berlin Heidelberg
Erschienen in: Empirical Economics / Ausgabe 6/2021
Print ISSN: 0377-7332
Elektronische ISSN: 1435-8921
DOI: https://doi.org/10.1007/s00181-021-02016-4

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