This paper sheds light on the magnitude of income elasticity of health care expenditure in Africa. The existing literature has to date focused on developed countries due to scarcity of health expenditure data in developing countries. We here exploit panel data techniques that combine time-series...

Panel data and Hsiao's version of Granger non-causality tests are used to revisit the relationship between GDP and aggregate health care spending, their growth rate series and de-trended series. The possible causality is assumed to be valid in either or in both directions. For the sample of 34...