Current Methods and Applications in Econometrics
On the Relationship Between Health Expenditures, GDP, Air Pollution and Population Ageing: Evidence From TurkeyBurcu Kıran Baygın
This paper investigates the long-term relationship between health expenditures, GDP, CO2 emissions as an indicator of air pollution, and population aging in Turkey over the period of 1975 through 2018. For this purpose, we apply the Carrion-i Silvestre et al. (2009) unit root test and the Maki (2012) cointegration test by taking into account the effects of structural breaks. These techniques have an advantage of allowing up to five multiple structural breaks. As the first step of our analysis, we used traditional unit root tests by neglecting the existence of possible structural breaks and found that all the series were nonstationary in level but stationary after first differencing. Then, the same results were obtained based on the Carrion-i Silvestre et al. (2009) unit root tests. These results led us to use the Maki(2012) cointegration test with multiple structural breaks in the long-term relationship between health expenditures, GDP, CO2 emissions, and the aging population. According to the results of three different cointegration model specifications (A, B, and C), the evidence of a long-term relationship was found between health expenditures and GDP and also between health expenditures, GDP, and CO2 emissions. However, there is no evidence of a longterm relationship between health expenditures, GDP, CO2 emissions, and the aging population.