IDEAS home Printed from https://ideas.repec.org/p/hal/journl/hal-01463103.html
   My bibliography  Save this paper

Childhood preventive care, adult healthcare and economic growth: The role of healthcare financing

Author

Listed:
  • Maame Esi Woode

    (GREQAM - Groupement de Recherche en Économie Quantitative d'Aix-Marseille - EHESS - École des hautes études en sciences sociales - AMU - Aix Marseille Université - ECM - École Centrale de Marseille - CNRS - Centre National de la Recherche Scientifique)

  • Carine Nourry

    (IUF - Institut Universitaire de France - M.E.N.E.S.R. - Ministère de l'Education nationale, de l’Enseignement supérieur et de la Recherche, GREQAM - Groupement de Recherche en Économie Quantitative d'Aix-Marseille - EHESS - École des hautes études en sciences sociales - AMU - Aix Marseille Université - ECM - École Centrale de Marseille - CNRS - Centre National de la Recherche Scientifique)

  • Bruno Ventelou

    (ORS PACA, GREQAM - Groupement de Recherche en Économie Quantitative d'Aix-Marseille - EHESS - École des hautes études en sciences sociales - AMU - Aix Marseille Université - ECM - École Centrale de Marseille - CNRS - Centre National de la Recherche Scientifique)

Abstract

We analyze the impact of healthcare financing on economic growth, focusing on the issue of the joint public-private financing of healthcare (co-payment). We use an overlapping-generations model with endogenous growth based on health human capital accumulation, where families pay for childhood preventive care and the government can either fully finance or co-finance adulthood curative care. From a growth maximizing perspective, distortionary taxes give an advantage to co-financing. Nevertheless, we prove that, if agents are assumed to be heterogeneous in preferences, full financing can become the best option.

Suggested Citation

  • Maame Esi Woode & Carine Nourry & Bruno Ventelou, 2014. "Childhood preventive care, adult healthcare and economic growth: The role of healthcare financing," Post-Print hal-01463103, HAL.
    • Handle: RePEc:hal:journl:hal-01463103
    DOI: 10.1016/j.econlet.2014.04.017
    as

    Download full text from publisher

    To our knowledge, this item is not available for download. To find whether it is available, there are three options:
    1. Check below whether another version of this item is available online.
    2. Check on the provider's web page whether it is in fact available.
    3. Perform a search for a similarly titled item that would be available.

    Other versions of this item:

    References listed on IDEAS

    as
    1. Korte, R. & Richter, Heide & Merkle, F. & Görgen, H., 1992. "Financing health services in Sub-Saharan Africa: Options for decision makers during adjustment," Social Science & Medicine, Elsevier, vol. 34(1), pages 1-9, January.
    2. Shankha Chakraborty & Mausumi Das, 2005. "Mortality, Human Capital and Persistent Inequality," Journal of Economic Growth, Springer, vol. 10(2), pages 159-192, June.
    3. Bloom, David E. & Canning, David & Sevilla, Jaypee, 2004. "The Effect of Health on Economic Growth: A Production Function Approach," World Development, Elsevier, vol. 32(1), pages 1-13, January.
    4. Selma J. Mushkin, 1962. "Health as an Investment," NBER Chapters, in: Investment in Human Beings, pages 129-157, National Bureau of Economic Research, Inc.
    5. Buly A. Cardak, 1999. "Heterogeneous Preferences, Education Expenditures and Income Distribution," The Economic Record, The Economic Society of Australia, vol. 75(1), pages 63-76, March.
    6. Devarajan, Shantayanan & Swaroop, Vinaya & Heng-fu, Zou, 1996. "The composition of public expenditure and economic growth," Journal of Monetary Economics, Elsevier, vol. 37(2-3), pages 313-344, April.
    7. Pablo Gottret & George Schieber, 2006. "Health Financing Revisited : A Practitioner's Guide," World Bank Publications - Books, The World Bank Group, number 7094, December.
    8. Glomm, Gerhard & Ravikumar, B, 1992. "Public versus Private Investment in Human Capital Endogenous Growth and Income Inequality," Journal of Political Economy, University of Chicago Press, vol. 100(4), pages 818-834, August.
    9. Barro, Robert J, 1990. "Government Spending in a Simple Model of Endogenous Growth," Journal of Political Economy, University of Chicago Press, vol. 98(5), pages 103-126, October.
    10. Grossman, Michael, 1972. "On the Concept of Health Capital and the Demand for Health," Journal of Political Economy, University of Chicago Press, vol. 80(2), pages 223-255, March-Apr.
    11. Roggero, P. & Mangiaterra, V. & Bustreo, F. & Rosati, F., 2007. "The health impact of child labor in developing countries: Evidence from cross-country data," American Journal of Public Health, American Public Health Association, vol. 97(2), pages 271-275.
    12. Cardak, Buly A, 1999. "Heterogeneous Preferences, Education Expenditures and Income Distribution," The Economic Record, The Economic Society of Australia, vol. 75(228), pages 63-76, March.
    13. Selma J. Mushkin, 1962. "Health as an Investment," Journal of Political Economy, University of Chicago Press, vol. 70, pages 129-129.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Pu Liao & Zhihong Dou & Xingxing Guo, 2021. "The Effect of Health Shock and Basic Medical Insurance on Family Educational Investment for Children in China," IJERPH, MDPI, vol. 18(10), pages 1-16, May.
    2. Woode, Maame Esi, 2017. "Parental health shocks and schooling: The impact of mutual health insurance in Rwanda," Social Science & Medicine, Elsevier, vol. 173(C), pages 35-47.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Isreal, Akingba Idowu Opeoluwa & Kaliappan, Shivee & Hamzah, Hanny Zurina, 2019. "Impact of Health Capital on Total Factor Productivity in Singapore," Jurnal Ekonomi Malaysia, Faculty of Economics and Business, Universiti Kebangsaan Malaysia, vol. 53(2), pages 83-98.
    2. Ayhan KULOĞLU & Eyyup ECEVİT, 2017. "The Relationship Between Health Development Index And Financial Development Index: Evidence From High Income Countries," Journal of Research in Economics, Politics & Finance, Ersan ERSOY, vol. 2(2), pages 83-95.
    3. Christopher P. P. Shafuda & Utpal Kumar De, 2020. "Government expenditure on human capital and growth in Namibia: a time series analysis," Journal of Economic Structures, Springer;Pan-Pacific Association of Input-Output Studies (PAPAIOS), vol. 9(1), pages 1-14, December.
    4. Piper, Brian, 2014. "A production function examination of the aggregate effects of nutrition," Journal of Macroeconomics, Elsevier, vol. 40(C), pages 293-307.
    5. Andrés Rodríguez‐Pose & Vassilis Tselios, 2009. "Education And Income Inequality In The Regions Of The European Union," Journal of Regional Science, Wiley Blackwell, vol. 49(3), pages 411-437, August.
    6. Alfredo M. Pereira & Rui M. Pereira & Pedro G. Rodrigues, 2019. "Health care investments and economic performance in Portugal: an industry level analysis," Journal of Economic Studies, Emerald Group Publishing Limited, vol. 46(6), pages 1174-1200, October.
    7. 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.
    8. 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.
    9. Stefano Bosi & Thierry Laurent, 2008. "Health, Growth and Welfare: Why Put Public Money on Medical R&D?," Documents de recherche 08-18, Centre d'Études des Politiques Économiques (EPEE), Université d'Evry Val d'Essonne.
    10. Essosinam Franck Karabou & Komlan Ametowoyo Adeve & Kossi Atsutsè Dziédzom Tsomdzo, 2021. "Dépenses publiques de santé, état de santé et croissance en Afrique Subsaharienne: Cas de l'Afrique de l'Est et de l'Ouest," African Development Review, African Development Bank, vol. 33(2), pages 397-407, June.
    11. Eleftherios Goulas & Athina Zervoyianni, 2012. "Growth, Deficits and Uncertainty in a Panel of 28 Countries," Working Paper series 52_12, Rimini Centre for Economic Analysis.
    12. Wycliffe Obwori Alwago, 2023. "The nexus between health expenditure, life expectancy, and economic growth: ARDL model analysis for Kenya," Regional Science Policy & Practice, Wiley Blackwell, vol. 15(5), pages 1064-1085, June.
    13. Boachie, Micheal Kofi & Ramu, K., 2015. "Public Health Expenditure and Health Status in Ghana," MPRA Paper 66371, University Library of Munich, Germany.
    14. Agnieszka Jakubowska, 2020. "Behavioural Health Factors and Limitations to the Health of Labour Force: Analysis of the Convergence Process of the EU Economies," European Research Studies Journal, European Research Studies Journal, vol. 0(4), pages 258-276.
    15. Salwa TRABELSI, 2017. "Public education expenditure and economic growth: the educational quality threshold effect," Region et Developpement, Region et Developpement, LEAD, Universite du Sud - Toulon Var, vol. 45, pages 99-112.
    16. Lurås, Hilde, 2009. "A healthy lifestyle: The product of opportunities and preferences," HERO Online Working Paper Series 2001:11, University of Oslo, Health Economics Research Programme.
    17. I. Hakan Yetkiner, 2006. "Saglik ile Buyume," Ege Academic Review, Ege University Faculty of Economics and Administrative Sciences, vol. 6(2), pages 83-91.
    18. Azmat Gani, 2009. "Some Aspects of Communicable and Non-communicable Diseases in Pacific Island Countries," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 91(2), pages 171-187, April.
    19. Yingzhu Yang & Rong Zheng & Lexiang Zhao, 2021. "Population Aging, Health Investment and Economic Growth: Based on a Cross-Country Panel Data Analysis," IJERPH, MDPI, vol. 18(4), pages 1-16, February.
    20. Saten Kumar, 2013. "Systems GMM estimates of the health care spending and GDP relationship: a note," The European Journal of Health Economics, Springer;Deutsche Gesellschaft für Gesundheitsökonomie (DGGÖ), vol. 14(3), pages 503-506, June.

    More about this item

    Keywords

    Economic development; Growth; health; human capital;
    All these keywords.

    JEL classification:

    • O11 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development
    • I18 - Health, Education, and Welfare - - Health - - - Government Policy; Regulation; Public Health

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:hal:journl:hal-01463103. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: CCSD (email available below). General contact details of provider: https://hal.archives-ouvertes.fr/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.