Public pharmaceutical expenditure: identification of spatial effects
The aim of the present study is to analyse the spatio-temporal dynamics underlying Spanish pharmaceutical expenditure increases. We suggest alternative ways to resolve the problem of identifying exogenous and endogenous spatial spillover in a seemingly unrelated regression framework, while parametric instability is captured using linear time trends in the coefficients. The results highlight the need of considering these dynamic aspects in the pharmaceutical expenditure analysis.
pharmaceutical expenditure identification spatial spillover spatial autoregression distributed lag sur i11 l65 r15 c21 c23