By using the probabilistic framework of production efficiency, the paper develops timedependent conditional efficiency estimators performing a non-parametric frontier analysis. Specifically, by applying both full and quantile (robust) time-dependent conditional estimators, it models the dynamic effect of health expenditure on countries’ technological change and technological catch-up levels. The results from the application reveal that the effect of per capita health expenditure on countries’ technological change and technological catch-up is nonlinear and is subject to countries’ specific income levels.
- Conditional efficiency measures
- health expenditure
- non-parametric analysis
- probabilistic approach