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The contribution of increased life expectancy to economic development in twentieth century Japan

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  • Hickson, Kerry Jane
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    Abstract

    This paper estimates the value of improved health in Japan over the twentieth century. By valuing the decline in the death rate and appending this to existing measures of GDP per capita it is possible to calculate health augmented GDP per capita growth and generate original results about the monetary value of improved life expectancy over the twentieth century in Japan. The findings of the paper indicate that this is a pertinent exercise because GDP per capita growth approximately doubles when it is extended to include increases in the life expectancy of the population of Japan. These results also provide a justification for the increase in health care service spending that was evident at the close of the twentieth century.

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    Bibliographic Info

    Article provided by Elsevier in its journal Journal of Asian Economics.

    Volume (Year): 20 (2009)
    Issue (Month): 4 (September)
    Pages: 489-504

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    Handle: RePEc:eee:asieco:v:20:y:2009:i:4:p:489-504

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    Web page: http://www.elsevier.com/locate/asieco

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    Keywords: Mortality Japan Economic development Twentieth century;

    References

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    1. Aldy, Joseph E. & Viscusi, W. Kip, 2003. "The Value of Statistical Life: A Critical Review of Market Estimates throughout the World," Working paper 282, Regulation2point0.
    2. Kniesner, Thomas J & Leeth, John D, 1991. " Compensating Wage Differentials for Fatal Injury Risk in Australia, Japan, and the United States," Journal of Risk and Uncertainty, Springer, vol. 4(1), pages 75-90, January.
    3. Kinugasa, Tomoko & Mason, Andrew, 2007. "Why Countries Become Wealthy: The Effects of Adult Longevity on Saving," World Development, Elsevier, vol. 35(1), pages 1-23, January.
    4. repec:reg:rpubli:282 is not listed on IDEAS
    5. Mincer, Jacob & Higuchi, Yoshio, 1988. "Wage structures and labor turnover in the United States and Japan," Journal of the Japanese and International Economies, Elsevier, vol. 2(2), pages 97-133, June.
    6. Kevin M. Murphy & Robert H. Topel, 2006. "The Value of Health and Longevity," Journal of Political Economy, University of Chicago Press, vol. 114(5), pages 871-904, October.
    7. Alan Williams, 1997. "Intergenerational Equity: An Exploration of the 'Fair Innings' Argument," Health Economics, John Wiley & Sons, Ltd., vol. 6(2), pages 117-132.
    8. Ikegami, Naoki, 1982. "Institutionalized and the non-institutionalized elderly," Social Science & Medicine, Elsevier, vol. 16(23), pages 2001-2008, January.
    9. Barnum, Howard, 1987. "Evaluating healthy days of life gained from health projects," Social Science & Medicine, Elsevier, vol. 24(10), pages 833-841, January.
    10. Flath, David, 2005. "The Japanese Economy," OUP Catalogue, Oxford University Press, edition 2, number 9780199278619, September.
    11. Andrew Mason & Tomoko Kinugasa, 2005. "East Asian Economic Development: Two Demographic Dividends," Economics Study Area Working Papers 83, East-West Center, Economics Study Area.
    12. Horioka, Charles Yuji, 1990. "Why is Japan's household saving rate so high? A literature survey," Journal of the Japanese and International Economies, Elsevier, vol. 4(1), pages 49-92, March.
    13. Blomquist, Glenn, 1981. "The Value of Human Life: An Empirical Perspective," Economic Inquiry, Western Economic Association International, vol. 19(1), pages 157-64, January.
    14. David E. Bloom & David Canning & Jaypee Sevilla, 2001. "Economic Growth and the Demographic Transition," NBER Working Papers 8685, National Bureau of Economic Research, Inc.
    15. J. Bradford DeLong, 2000. "Cornucopia: The Pace of Economic Growth in the Twentieth Century," NBER Working Papers 7602, National Bureau of Economic Research, Inc.
    16. Arora, Suchit, 2001. "Health, Human Productivity, And Long-Term Economic Growth," The Journal of Economic History, Cambridge University Press, vol. 61(03), pages 699-749, September.
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