A Time Series Analysis on the Economic Determinants of Public Health Expenditure in the Philippines

Abstract

This study determines the significant relationships between the variables observed in the public health expenditure in the Philippines from 1990 until 2019. The dependent variable in the study is public health expenditure, while the independent variables are income, unemployment, and urbanization. The multivariate Ordinary Least Squares (OLS) regression is employed in the study, and the results indicate that income and urbanization are positive and significant determinants. On the other hand, unemployment is negative and a significant determinant affecting public health expenditure in the Philippines. Moreover, the researchers also utilize Microsoft Excel and EViews to run the necessary econometric tests to ensure the model's efficiency. The results suggest that the overall model is robust. The tests applied indicate that issues in serial correlation, multicollinearity, heteroskedasticity, misspecification, and normality of the model are not detected.