A simultaneous three-equation model is specified between GDP per capita (GDPc) level, infant mortality rate and health expenditures for 194 countries from 1990 to 2014. GMM-2SLS estimation results indicate that simultaneous decreasing infant mortality rate and increasing GDPc level effects are...

Panel data and Hsiao's version of Granger non-causality tests are used to revisit the relationship between GDP and aggregate health care spending, their growth rate series and de-trended series. The possible causality is assumed to be valid in either or in both directions. For the sample of 34...