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Health care and Economic Growth

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Author Info

  • Pascal GOURDEL
  • Liem HOANG NGOC
  • Cuong LE VAN
  • Tédie MAZAMBA

Abstract

In this paper we adapt a discrete time version of the Lucas model to a model with social protection where part of the total production is devoted to the health expenditures. The output is produced by labor and the technology exhibits externalities. The rate of growth of human capital depends on the ratio of health expenditures over GDP. We give conditions for which the optimal himan capital sequences are increasing. When the instantaneous utility function is isoelastic and the production function is Cobb-Douglas, we prove that the optimal himan capital sequences grow at constant rate. Moreover, we prove there exists a unique equilibrium in the sense of Lucas [1988] or Romer [1986].

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File URL: http://www.jstor.org/stable/20079103
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Bibliographic Info

Article provided by ENSAE in its journal Annals of Economics and Statistics.

Volume (Year): (2004)
Issue (Month): 75-76 ()
Pages: 257-272

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Handle: RePEc:adr:anecst:y:2004:i:75-76:p:12

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Cited by:
  1. Cavaco, Sandra & Eriksson, Tor & Skalli, Ali, 2011. "Life Cycle Development of Obesity and Its Determinants," Working Papers 11-7, University of Aarhus, Aarhus School of Business, Department of Economics.
  2. Alexander S. Skorobogatov, 2012. "The value of human capital and health behavior," Economics Bulletin, AccessEcon, vol. 32(2), pages 1785-1796.

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