Health, education and endogenous growth
Abstract
The purpose of the paper is to show that, from a growth perspective, government resources can be spent in two different ways. Resources can be allocated to uses which support growth, and to uses which generate growth. We take the provision of health services as an example of the first type of use, and the provision of educational services as an example of the second. This enables us to integrate both types of uses of scarce resources in an endogenous growth framework and to derive the optimum mix of the provision of health and educational services both from the perspective of health as a complement to growth and health as a substitute for growth. The model illustrates that there is a trade-off between growth as such and the provision of health-services. It also shows that a slow down in growth could be expected to occur when the preference for health is positively influenced by a growing income per head or in the case of an ageing population. Finally, we show that the model can account for a ’growth take off’ in countries which are too poor to save, and that this take off can be induced by ’just the right’ amount of income transfer to those countries : too little aid doesn’t seem to help at all, while too much aid unnecessarily burdens the long term solvability of the receiving country if aid is provided in the form of loans.Download Info
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Paper provided by Maastricht : MERIT, Maastricht Economic Research Institute on Innovation and Technology in its series Research Memoranda with number 006.Length:
Date of creation: 1997
Date of revision:
Handle: RePEc:dgr:umamer:1997006
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Web page: http://www.maastrichtuniversity.nl/web/UMPublications.htm
Related research
Keywords: economic development an growth ;References
References listed on IDEASPlease report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
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Citations
Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.Cited by:
- Muysken,Joan & Yetkiner,I. Hakan & Ziesemer,Thomas, 1999.
"Health, Labour Productivity and Growth,"
Research Memoranda
028, Maastricht : MERIT, Maastricht Economic Research Institute on Innovation and Technology.
- Muysken, Joan & Yetkiner, I. Hakan & Ziesemer, Thomas, 1999. "Health, labour productivity and growth," CCSO Working Papers 200015, University of Groningen, CCSO Centre for Economic Research.
- Muysken, Joan & Yetkiner, I,Hakan & Ziesemer, Thomas, 2003. "Health, labour productivity and growth," Open Access publications from Maastricht University urn:nbn:nl:ui:27-17172, Maastricht University.
- Xavier Pautrel, 2009.
"Health-enhancing activities and the environment:How competition for resources make the environmental policy beneficial,"
Working Papers
hal-00423323, HAL.
- Xavier Pautrel, 2009. "Health-enhancing Activities and the Environment: How Competition for Resources Makes the Environmental Policy Beneficial," Working Papers 2009.111, Fondazione Eni Enrico Mattei.
- Philippe Ulmann, 2004. "Est-il possible (souhaitable) de maîtriser les dépenses de santé ?," Revue d'Économie Financière, Programme National Persée, vol. 76(3), pages 19-37.
- Zon, Adriaan van & Muysken, Joan, 2001.
"Health and endogenous growth,"
Open Access publications from Maastricht University
urn:nbn:nl:ui:27-14918, Maastricht University.
- van Zon, Adriaan & Muysken, Joan, 2001. "Health and endogenous growth," Journal of Health Economics, Elsevier, vol. 20(2), pages 169-185, March.
- Peaucelle, Irina, 2001. "Economie et santé : où en est la Russie ?," CEPREMAP Working Papers (Couverture Orange) 0105, CEPREMAP.
- Hosoya, Kei, 2001. "Health, Longevity, and the Productivity Slowdown," Discussion Paper 25, Center for Intergenerational Studies, Institute of Economic Research, Hitotsubashi University.
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