In this paper, we estimate a health care demand function for 18 OECD countries for the period 1972-1995. We consider a demand side approach where health expenditure depend on per capita GDP and the relative price of health care. We use panel data unit root and stationarity tests to characterize our data. Then, we test cointegration between our variables with Kao[16] panel data cointegration tes...

This paper examines the relationship between exchange rates and stock prices in eight Asian countries using cointegration and Granger causality tests over the period 1991 to 2005. We test for cointegration and Granger causality for both individual countries using the Gregory and Hansen (1996) cointegration test that accommodates a structural break in the cointegrating vector, and for a panel us...

This paper studies asymptotic and finite sample properties of statistics devised to test for the null of no cointegration in nonstationary pooled time series panels as both the cross section and time series dimensions grow large. The paper finds that for panels with homogenous long run parameters, the spurious regression coefficient estimates become consistent even under the null of no cointegr...

This paper examines the relationship between economic growth and tourism development in seven Mediterranean countries. The purpose of this paper is to investigate empirically the long-run relationship between economic growth and tourism development in a multivariate model with tourism real receipts per capita, the number of international tourist arrivals per capita; real effective exchange rate...

We use a 3-step analysis to assess the sustainability of public finances in the EU27. Firstly, we perform the SURADF specific panel unit root test to investigate the meanreverting behaviour of general government expenditures and revenues ratios. Secondly, we apply the bootstrap panel cointegration techniques that account for the time series and cross-sectional dependencies of the regression err...

We assess the sustainability of public finances in the EU15 using stationarity and cointegration analysis. Specifically, we use panel unit root tests of the first and second generation allowing in some cases for structural breaks. We also apply modern panel cointegration techniques developed by Pedroni (1999, 2004), generalized by Banerjee and Carrion-i-Silvestre (2006) and Westerlund and Edger...

This paper examines the validity of purchasing power parity (PPP) using CPI and Big Mac prices. The benchmark model, i.e., the OLS method, which does not take nonstationarity into account, rejects the hypothesis of PPP regardless of prices used. We next use the panel cointegration method to consider the nonstationary nature of variables. Estimated results for CPI are mixed. The PPP is rejected ...

In this paper we describe a method for testing the null of no cointegration in dynamic panels with multiple regressors and compute approximate critical values for these tests. Methods for non-stationary panels, including panel unit root and panel cointegration tests, have been gaining increased acceptance in recent empirical research. To date, however, tests for the null of no cointegration in ...

Coe and Helpman (1995) estimated a relationship between TFP and levels of domestic and foreign R&D capital, but couldn't provide compelling evidence of the panel eointegration needed to support their estimation strategy. This paper uses Pedroni's (1997, 1998) tests for panel cointegration in both the Coe-Helpman setup and in a framework with more cross-section heterogeneity. Criticisms of the C...