Analysis on Discrete Choice Model of Mutual Fluctuat ion Between THE and GDP

Analysis on Discrete Choice Model of Mutual Fluctuat ion Between THE and GDP


Author:Zhang Ailian,Pang Xiaobo Journal:China Health Economics  Date:2008(3)

Keywords Total health expenditure (THE), GDP, Discrete choice model

Abstract

The relationship of GDP and total health expenditure is always tested by classical linear regression models, but the linkage of fluctuation between variables is ignored. Actually, in the economic process, economic variables deviate from long- term equilibrium and fluctuate. Therefore, this article constructs total health expenditure press index, and depicts response probabilities of total health expenditure to GDP index changes in expansion and contraction process. The dynamic relationship between divergence of total health expenditure and GDP is strong. The right fluctuation of GDP provides fiscal support for total health expenditure.

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