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Economic growth and health: direct impact or reverse causation?

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  • Berta Rivera
  • Luis Currais
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    Abstract

    The purpose of this paper is to identify the role of health status in productivity. In order to check the existence of reverse causation suggested by previous studies the Hausman test was carried out and different sets of instruments were used as exogenous determinants of health expenditure. Variables related to health expenditure were used to estimate the elasticity and these produced accepted results. Evidence was obtained to support the positive effect of health on economic growth.

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    File URL: http://www.informaworld.com/openurl?genre=article&doi=10.1080/135048599352367&magic=repec&7C&7C8674ECAB8BB840C6AD35DC6213A474B5
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    Bibliographic Info

    Article provided by Taylor & Francis Journals in its journal Applied Economics Letters.

    Volume (Year): 6 (1999)
    Issue (Month): 11 ()
    Pages: 761-764

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    Handle: RePEc:taf:apeclt:v:6:y:1999:i:11:p:761-764

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    Cited by:
    1. Erkan Erdil & I. Hakan Yetkiner, 2009. "The Granger-causality between health care expenditure and output: a panel data approach," Applied Economics, Taylor & Francis Journals, vol. 41(4), pages 511-518.
    2. Suhrcke, Marc & Pelgrin, Florian & Oliveira Martins, Joaquim & Dormont, Brigitte, 2007. "Health expenditures, longevity and growth," Economics Papers from University Paris Dauphine 123456789/3882, Paris Dauphine University.
    3. Gianluigi Coppola, 2012. "Health, Lifestyle and Growth," AIEL Series in Labour Economics, in: Giuliana Parodi & Dario Sciulli (ed.), Social Exclusion. Short and Long Term Causes and Consequences, edition 1, chapter 1, pages 17-34 AIEL - Associazione Italiana Economisti del Lavoro.
    4. Husain, Muhammad Jami, 2010. "Contribution of health to economic development: A survey and overview," Economics - The Open-Access, Open-Assessment E-Journal, Kiel Institute for the World Economy, vol. 4(14), pages 1-52.
    5. Francisco de Castro Fernández & José Manuel González Mínguez, 2008. "The composition of public finances and long-term growth: a macroeconomic approach," Banco de Espa�a Occasional Papers 0809, Banco de Espa�a.
    6. Mariano Torras, 2006. "The Impact of Power Equality, Income, and the Environment on Human Health: Some Inter-Country Comparisons," International Review of Applied Economics, Taylor & Francis Journals, vol. 20(1), pages 1-20.
    7. Marc Suhrcke & Dieter Urban, 2010. "Are cardiovascular diseases bad for economic growth?," Health Economics, John Wiley & Sons, Ltd., vol. 19(12), pages 1478-1496, December.
    8. Lixin Cai, 2009. "Effects of Health on Wages of Australian Men," The Economic Record, The Economic Society of Australia, vol. 85(270), pages 290-306, 09.
    9. Erkan Erdil & I. Hakan Yetkiner, 2004. "A Panel Data Approach for Income-Health Causality," Working Papers FNU-47, Research unit Sustainability and Global Change, Hamburg University, revised Apr 2004.
    10. Husain, Muhammad Jami, 2009. "Contribution of health to economic development: a survey and overview," Economics Discussion Papers 2009-40, Kiel Institute for the World Economy.
    11. Jochen Hartwig, 2010. "Testing the growth effects of structural change," KOF Working papers 10-264, KOF Swiss Economic Institute, ETH Zurich.
    12. Jochen Hartwig, 2008. "Has health capital formation cured ‘Baumol’s Disease’? – Panel Granger causality evidence for OECD countries," KOF Working papers 08-206, KOF Swiss Economic Institute, ETH Zurich.
    13. Bo Malmberg & Eva Andersson & S V Subramanian, 2010. "Links between ill health and regional economic performance: evidence from Swedish longitudinal data," Environment and Planning A, Pion Ltd, London, vol. 42(5), pages 1210-1220, May.
    14. Rivera, Berta & Currais, Luis, 2004. "Public Health Capital and Productivity in the Spanish Regions: A Dynamic Panel Data Model," World Development, Elsevier, vol. 32(5), pages 871-885, May.
    15. Heinz Handler & Andreas Knabe & Bertrand Koebel & Margit Schratzenstaller & Sven Wehke, 2005. "The Impact of Public Budgets on Overall Productivity Growth," WIFO Working Papers 255, WIFO.
    16. Arshia Amiri & Ulf-G Gerdtham & Bruno Ventelou, 2012. "A new approach for estimation of long-run relationships in economic analysis using Engle-Granger and artificial intelligence methods," Working Papers halshs-00606048, HAL.
    17. Hartwig, Jochen, 2010. "Is health capital formation good for long-term economic growth? - Panel Granger-causality evidence for OECD countries," Journal of Macroeconomics, Elsevier, vol. 32(1), pages 314-325, March.
    18. Guillem López-Casasnovas & Berta Rivera, 2002. "Las políticas de equidad en salud y las relaciones entre renta y salud," Hacienda Pública Española, IEF, vol. 161(2), pages 99-126, June.

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