American Journal of Applied Sciences

Stationarity and Cointegration between Health Care Expenditure and GDP for Jordan

Rasha M.S. Istaiteyeh and Mohd Tahir Ismail

DOI : 10.3844/ajassp.2017.682.689

American Journal of Applied Sciences

Volume 14, Issue 7

Pages 682-689

Abstract

This paper explores the Granger-causality relationship between real GDP per capita and real health care expenditure per capita for Jordan during 1995 through 2013. The findings point out that the dominant type of Granger-causality is unidirectional. Furthermore, income elasticity of health expenditure is less than 1, which means that health care is a necessary good in Jordan. To this end, policies must be aimed at raising national income to improve eventually the well-being of the population.

Copyright

© 2017 Rasha M.S. Istaiteyeh and Mohd Tahir Ismail. This is an open access article distributed under the terms of the Creative Commons Attribution License, which permits unrestricted use, distribution, and reproduction in any medium, provided the original author and source are credited.