2007/07/25 by Joakim Westerlund
Economics, Econometrics and Finance · Health Professions · #Fiscal Policy and Economic Growth #Global Health Care Issues #Monetary Policy and Economic Impact
paper · doi:10.1111/j.1468-0084.2007.00477.x
openalex publication_date 2007/07/25 · openalex created_date 2025/10/10 · openalex updated_date 2026/08/01
Abstract This paper proposes new error correction‐based cointegration tests for panel data. The limiting distributions of the tests are derived and critical values provided. Our simulation results suggest that the tests have good small‐sample properties with small size distortions and high power relative to other popular residual‐based panel cointegration tests. In our empirical application, we present evidence suggesting that international healthcare expenditures and GDP are cointegrated once the possibility of an invalid common factor restriction has been accounted for.