This is an easy manuscript to the reader who has some basic knowledge of economics and econometrics. A concrete empirical analysis has been used to sketch two important but highly debatable quires. First, it measures income elasticity of health expenditure (health expenditure luxury or necessity) of the country. Second, it perceives questions of causal relationship between health expenditure and income of the country. So, researchers, policymakers’ and no doubt students who want to study the relationship between health expenditure and income in aggregate will find valuable from this work and it is also handbook for readers on related studies. Finally, this book will be helpful for macroeconomic analysis and good guide for future policy implications in the area of health expenditure and causality analysis. Likewise, higher level students will see some important econometric methodologies from which they can analyze further deep research on their similar or related studies.