The long-run and short-run effects of health aid on life expectancy

Abstract

This article examines the long-run and short-run effects of health aid on health, as measured by life expectancy at birth. Using panel cointegration techniques, it is found that while in the short run health aid has significant positive effects on life expectancy, in the long run, an increase in health aid leads to a small but significant reduction in life expectancy.

Keywords:

• health aid
• health
• panel cointegration

JEL Classification:

• F35
• I15
• C23