Acemoglu, Daron; Finkelstein, Amy; Notowidigdo, Matthew J. - C.E.P.R. Discussion Papers - 2009
this is primarily a consequence of rising real per capita income, which more than doubled over the same period. We … investigate this hypothesis empirically by instrumenting for local area income with time-series variation in global oil prices … an increase in income on health expenditures. Our central estimate is an income elasticity of 0.7, with an elasticity of …
