2010-01: Cancer and economic growth in an aging population: estimating the impact for Australia (Working paper)

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Swift, Robyn
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Nguyen, Tom

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2010
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31 pages

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Abstract

This paper uses Johansen multivariate cointegration analysis to estimate the effect of cancer on economic growth in Australia from 1907-2006. The results show that there is a long run cointegrating relationship between GDP per capita, total cancer mortality rates and the age dependency ratio. An increase of 1% in total cancer death rates will result in 1.6% decrease in GDP. The results also indicate that a 1% increase in the dependency ratio leads to a 0.9% decrease in GDP. Both GDP and cancer are influenced by changes in the long run relationship, indicating that there is two-way causation between them.

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Copyright © 2010 by author(s). No part of this paper may be reproduced in any form, or stored in a retrieval system, without prior permission of the author(s).

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Economics and Business Statistics

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Subject

I00 - Health, Education, and Welfare: General

Health

Cancer

Neoplasms

GDP

Economic growth

VECM

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