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The relation between wealth and health: Evidence from a world panel of countries

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  • Hansen, Casper Worm

Abstract

Based on a world sample of countries, this paper presents panel data evidence that documents a U-shaped relation between GDP per capita (wealth) and life expectancy (health). The evidence also shows that excluding the possibility of a nonmonotonic relationship induces erroneous conclusions about the time-varying wealth–health correlation.

Suggested Citation

  • Hansen, Casper Worm, 2012. "The relation between wealth and health: Evidence from a world panel of countries," Economics Letters, Elsevier, vol. 115(2), pages 175-176.
    • Handle: RePEc:eee:ecolet:v:115:y:2012:i:2:p:175-176
    DOI: 10.1016/j.econlet.2011.12.031
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    References listed on IDEAS

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    1. Matteo Cervellati & Uwe Sunde, 2011. "Life expectancy and economic growth: the role of the demographic transition," Journal of Economic Growth, Springer, vol. 16(2), pages 99-133, June.
    2. Daron Acemoglu & Simon Johnson, 2007. "Disease and Development: The Effect of Life Expectancy on Economic Growth," Journal of Political Economy, University of Chicago Press, vol. 115(6), pages 925-985, December.
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    4. Peter Lorentzen & John McMillan & Romain Wacziarg, 2008. "Death and development," Journal of Economic Growth, Springer, vol. 13(2), pages 81-124, June.
    5. West, Kenneth D, 1986. "A Variance Bounds Test of the Linear Quadratic Inventory Model," Journal of Political Economy, University of Chicago Press, vol. 94(2), pages 374-401, April.
    6. Moshe Hazan, 2012. "Life expectancy and schooling: new insights from cross-country data," Journal of Population Economics, Springer;European Society for Population Economics, vol. 25(4), pages 1237-1248, October.
    7. Li, Hongbin & Zhang, Jie & Zhang, Junsen, 2007. "Effects of longevity and dependency rates on saving and growth: Evidence from a panel of cross countries," Journal of Development Economics, Elsevier, vol. 84(1), pages 138-154, September.
    8. Oded Galor, 2011. "Unified Growth Theory," Economics Books, Princeton University Press, edition 1, number 9477.
    9. Manuel Arellano & Stephen Bond, 1991. "Some Tests of Specification for Panel Data: Monte Carlo Evidence and an Application to Employment Equations," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 58(2), pages 277-297.
    10. Jie Zhang & Junsen Zhang, 2005. "The Effect of Life Expectancy on Fertility, Saving, Schooling and Economic Growth: Theory and Evidence," Scandinavian Journal of Economics, Wiley Blackwell, vol. 107(1), pages 45-66, March.
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    Citations

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    Cited by:

    1. Olufunmilayo Olayemi Jemiluyi & Ifeoluwa Alao-Owunna, 2020. "A Reconsideration of the Health Status – Economic Growth Nexus: Evaluation of the Gender Differential Effect in Nigeria," Eurasian Journal of Economics and Finance, Eurasian Publications, vol. 8(4), pages 217-230.
    2. Zakir Husain & Mousumi Dutta & Nidhi Chowdhary, 2014. "Is Health Wealth? Results of a Panel Data Analysis," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 117(1), pages 121-143, May.
    3. Tansel, Aysit & Öztürk, Ceyhan & Erdil, Erkan, 2021. "The Impact of Body Mass Index on Growth, Schooling, Productivity, and Savings: A Cross-Country Study," IZA Discussion Papers 14727, Institute of Labor Economics (IZA).
    4. Madsen, Jakob B., 2016. "Barriers to Prosperity: Parasitic and Infectious Diseases, IQ, and Economic Development," World Development, Elsevier, vol. 78(C), pages 172-187.
    5. Bloom, David E. & Kuhn, Michael & Prettner, Klaus, 2018. "Health and Economic Growth," IZA Discussion Papers 11939, Institute of Labor Economics (IZA).
    6. Mohammad Reza Farzanegan, 2023. "Years of life lost to revolution and war in Iran," Review of Development Economics, Wiley Blackwell, vol. 27(4), pages 2061-2103, November.
    7. Mihai PĂUNICĂ & Alexandru MANOLE & Cătălina MOTOFEI & Gabriela - Lidia TĂNASE, 2020. "Life Expectancy from the Perspective of Global and Individual Wealth and Expenditures: A Granger Causality Study of Some Eu Countries," Journal for Economic Forecasting, Institute for Economic Forecasting, vol. 0(4), pages 170-184, December.
    8. Masagus M. Ridhwan & Peter Nijkamp & Affandi Ismail & Luthfi M.Irsyad, 2022. "The effect of health on economic growth: a meta-regression analysis," Empirical Economics, Springer, vol. 63(6), pages 3211-3251, December.
    9. Vishal Jaunky, 2013. "The Wealth-Health Nexus: New Global Evidence," Atlantic Economic Journal, Springer;International Atlantic Economic Society, vol. 41(2), pages 115-122, June.
    10. Kobylinski Katarina & Tyrowicz Joanna, 2018. "On the Relation Between Health and Income: A Cross-Country Analysis," Central European Economic Journal, Sciendo, vol. 5(52), pages 230-243, January.
    11. Weichun Chen & Judith A. Clarke & Nilanjana Roy, 2014. "Health and wealth: Short panel Granger causality tests for developing countries," The Journal of International Trade & Economic Development, Taylor & Francis Journals, vol. 23(6), pages 755-784, September.

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    More about this item

    Keywords

    Economic development; Life expectancy; Fixed effect estimation;
    All these keywords.

    JEL classification:

    • I15 - Health, Education, and Welfare - - Health - - - Health and Economic Development
    • O11 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development

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