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Tax Financed Government Health Expenditure and Growth with Capital Deepening Externality

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  • Hosoya, Kei
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    Abstract

    This paper develops a two-sector endogenous growth model with health capital and examines the impact tax financed health expenditure has on long-run growth. In this model, health capital is accumulated through government spending as a flow channel and a capital deepening externality as a stock channel. When arguing about the problem of growth maximizing flat tax, the latter channel plays a significant role for determining tax rate.

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    File URL: http://hermes-ir.lib.hit-u.ac.jp/rs/bitstream/10086/14534/1/pie_dp153.pdf
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    Bibliographic Info

    Paper provided by Center for Intergenerational Studies, Institute of Economic Research, Hitotsubashi University in its series Discussion Paper with number 153.

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    Length: 11 p.
    Date of creation: Jun 2003
    Date of revision:
    Handle: RePEc:hit:piedp1:153

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    Related research

    Keywords: Health capital; Capital deepening externality;

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    References

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    1. van Zon, Adriaan & Muysken, Joan, 2001. "Health and endogenous growth," Journal of Health Economics, Elsevier, vol. 20(2), pages 169-185, March.
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    Cited by:
    1. Bosi, Stefano & Laurent, Thierry, 2011. "Health, growth and welfare: a theoritical appraisal of the long run impact of medical R&D," MPRA Paper 33789, University Library of Munich, Germany.
    2. Dihai Wang & Heng-fu Zou, 2011. "The Fogel Approach to Health and Growth," CEMA Working Papers 520, China Economics and Management Academy, Central University of Finance and Economics.
    3. Liutang Gong & Hongyi Li & Dihai Wang & Heng-fu Zou, 2011. "Health, Taxes, and Growth," CEMA Working Papers 482, China Economics and Management Academy, Central University of Finance and Economics.
    4. Gong, Liutang & Li, Hongyi & Wang, Dihai, 2012. "Health investment, physical capital accumulation, and economic growth," China Economic Review, Elsevier, vol. 23(4), pages 1104-1119.
    5. Agénor, Pierre-Richard, 2008. "Health and infrastructure in a model of endogenous growth," Journal of Macroeconomics, Elsevier, vol. 30(4), pages 1407-1422, December.

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