摘要：This paper explored the determinants of health care expenditure using the demand side factors focusing the case study in Malaysia from 1981 to 2010. A seven-independent variable model is formulated with national income as one of the independent variables. The analysis began with the Augmented Dickey Fuller Test, followed by the cointegration test as well as the Vector Error Correction Modeling. The Augmented Dickey Fuller test revealed that the variables were stationary at first difference. The cointegration test showed the existence of long run relationship between the variables. The main findings in this study implied that the proportion of population aged below 15 and real GDP per capita were found positively significant in explaining the changes in real health care expenditure per capita. However, the result of Vector Error Correction Model estimation showed there was no short-run relationship between all the variables. Moreover, there was uni-directional Granger causality running from real GDP per capita to real health care expenditure per capita but not vice versa. Thus, the evidence for Malaysia clearly supported “The Income View” over “The Health View”. In short-run, health care expenditure was found to be an inferior good. However, the income elasticity of real health care expenditure per capita was found to be greater than one in long-run, meaning health care expenditure was a luxury good in Malaysia.
关键词：Cointegration; Causality; Health; National income; Income elasticity; Malaysia
