expenditure suggests that health care is a luxury good in these states. By contrast, the short-run elasticity obtained from the … regressions in first differences is in the range (0,1) for most US states, which suggests that health care is a necessity good … instead. The implications of these results for health policy are also discussed. …

expenditure suggests that health care is a luxury good in these states. By contrast, the short-run elasticity obtained from the … regressions in first differences is in the range (0,1) for most US states, which suggests that health care is a necessity good … instead. The implications of these results for health policy are also discussed. …