Asymmetry of Private Healthcare Expenditure on Life Expectancy in USA

In this paper, the short run and long run nonlinear relations between private health expenditure and life expectancy in USA during 1960-2023 are examined. Also, asymmetric impacts are tested via applying the Nonlinear Autoregressive Distributed Lag model with data from the World Bank and the National Bureau of Economic Research. The research found that there are both short and long asymmetries. The positive changes from cumulative dynamic multiplier of private expenditure on life expectancy have positive impact and negative changes have negative impact which are significant. The positive response and negative response converged to long run limits where the former is upward and the latter is downward. The asymmetry is upward moving and became stationary above the equilibrium level within the limits of confidence interval.