ASYMMETRY OF PRIVATE EXPENDITURE ON HEALTHCARE ON LIFE EXPECTANCY IN USA
Keywords:
life expectancy, private health expenditure, Asymmetry, NARDL, positive changes, negative changes, cumulative dynamic multiplierAbstract
In this paper, author examined the short run and long run nonlinear relation between private health expenditure and life expectancy in USA during 1960-2023 and tested asymmetric impacts by applying NARDL model taking data from the World Bank and from NBER. It found that there are both short and long asymmetries. The positive changes from cumulative dynamic multiplier of private expenditure on life expectancy have positive impact and negative changes have negative impact which are significant. The positive response and negative response converged to long run limits where the former is upward and the latter is downward. The asymmetry is upward moving and became stationary above the equilibrium level within the limits of confidence interval.
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