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On the Relation Between Health and Income: A Cross-Country Analysis

Author

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  • Kobylinski Katarina

    (Group for Research in Applied Economics (GRAPE), FAME; IZA Institute of Labor Economics, Deutsche Post Foundation; Faculty of Management, University of WarsawWarsawPoland)

  • Tyrowicz Joanna

    (Center for Economic Research and Graduate Education - Economics Institute, Charles University in PraguePragueCzechia)

Abstract

An examination of the correlation between health and wealth cannot determine the direction of causality between the two. Countries’ geographic characteristics have an important effect on health, and they are plausibly uncorrelated with other determinants of wealth. This paper uses two climate variables – population-weighted temperature and precipitation – to obtain instrumental variables estimates of the effect of health on wealth.

Suggested Citation

  • 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.
    • Handle: RePEc:vrs:ceuecj:v:5:y:2018:i:52:p:230-243:n:16
    DOI: 10.1515/ceej-2018-0020
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    References listed on IDEAS

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    More about this item

    Keywords

    Health; wealth; causality;
    All these keywords.

    JEL classification:

    • I15 - Health, Education, and Welfare - - Health - - - Health and Economic Development

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