Income inequlity and it's correlation with health indicators panel data analysis

Panel data models review unit dimensions and time dimensions simultaneously. This models have more observations and allow for safer results. Their ability to do analysis that cannot be done with only cross-section or time-series analysis is a primary reason of preference. Contrary to traditional panel works, in which unit dimension is bigger than time dimension, with macro panels time dimension is bigger than unit dimension. It is a reason of not being fixed and an important factor on testing cointegrity. In this master's thesis general informations about notion of health, health economics and development are given. 2 models of econometrics are emphasized over the course of this study. Initial model is studied with Wilkinson Hypothesis ,which analyzes the effects of income inequality over health. In the second model, with GDP, which affects expected lifespan, and health expenses variables, 22 countries are studied. In the analysis of non-fixed panels, frequently encountered estimation methods are examined. Panel unit root test, panel cointegration test and panel error correction models are used in the making of this study. Pesaran panel unit root test, which can be acquired with the help of common factors, is applied as cross sectional dependency is found. It is concluded that variables are not fixed. Cointegration relation is found in both of models as a result of Panel EC Cointegration Test. DDCE estimator is used during the last stages of this study.