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.
Original language | English |
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Pages (from-to) | 3401-3417 |
Number of pages | 17 |
Journal | Empirical Economics |
Volume | 61 |
Issue number | 6 |
DOIs | |
Publication status | Published - Dec 2021 |
Keywords
- Australia
- Club clustering
- Club convergence
- Convergence
- Health policy
- Healthcare expenditure