The Relationship Between Health Expenditure, CO2 Emissions, and Economic Growth in G7: Evidence from Heterogeneous Panel Data

Abstract

Τhe current paper examines the relationship between per capita health care expenditures, per capita CO2 emissions, and per capita gross domestic product (GDP) in G7 countries. At the beginning, we examine the cross-sectional dependence and the slope homogeneity between the countries. Then, the second-generation unit root test is applied using the Pesaran, CIPS (2007) test, while for the cointegration test, the Westerlund (Oxford Bulletin of Economics and Statistics 69(6):709-748, 2007) test was applied. The long -run panel cointegration coefficients were analyzed with the augmented mean group (AMG) estimators, which allow the cross-sectional dependence and heterogeneity.