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Health and the Evolution of Welfare across Brazilian Municipalities

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  • Soares, Rodrigo R.

    ()
    (Sao Paulo School of Economics)

Abstract

This paper describes the pattern of reductions in mortality across Brazilian municipalities between 1970 and 2000, and analyzes its causes and consequences. It shows that, as in the international context, the relationship between income and life expectancy has shifted consistently in the recent past. But reductions in mortality within Brazil have been more homogeneously distributed than across countries. We use a compensating differentials approach to estimate the value of the observed reductions in mortality. The results suggest that gains in life expectancy had a welfare value equivalent to 39% of the growth in income per capita, being therefore responsible for 28% of the overall improvement in welfare. We then use a dynamic panel to conduct a preliminary assessment of the potential determinants of these gains. We show that improvements in education, access to water, and sanitation seem to be important determinants of the dimension of changes in life expectancy not correlated with income.

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Bibliographic Info

Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 2771.

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Length: 31 pages
Date of creation: May 2007
Date of revision:
Publication status: published in: Journal of Development Economics, 2007, 84(2), 590–608
Handle: RePEc:iza:izadps:dp2771

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Keywords: value of life; life expectancy; mortality; inequality; health;

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References

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  1. Rosen, Sherwin, 1988. " The Value of Changes in Life Expectancy," Journal of Risk and Uncertainty, Springer, Springer, vol. 1(3), pages 285-304, September.
  2. Angus Deaton, 2004. "Health in an age of globalization," Working Papers, Princeton University, Woodrow Wilson School of Public and International Affairs, Research Program in Development Studies. 172, Princeton University, Woodrow Wilson School of Public and International Affairs, Research Program in Development Studies..
  3. Arellano, Manuel & Bond, Stephen, 1991. "Some Tests of Specification for Panel Data: Monte Carlo Evidence and an Application to Employment Equations," Review of Economic Studies, Wiley Blackwell, Wiley Blackwell, vol. 58(2), pages 277-97, April.
  4. W. Kip Viscusi & Joseph E. Aldy, 2003. "The Value of a Statistical Life: A Critical Review of Market Estimates throughout the World," NBER Working Papers 9487, National Bureau of Economic Research, Inc.
  5. Alves, Denisard & Belluzzo, Walter, 2004. "Infant mortality and child health in Brazil," Economics & Human Biology, Elsevier, Elsevier, vol. 2(3), pages 391-410, December.
  6. Gary S. Becker & Tomas J. Philipson & Rodrigo R. Soares, 2005. "The Quantity and Quality of Life and the Evolution of World Inequality," American Economic Review, American Economic Association, American Economic Association, vol. 95(1), pages 277-291, March.
  7. François Bourguignon & Christian Morrisson, 2001. "Inequality among World Citizens : 1820-1992," DELTA Working Papers, DELTA (Ecole normale supérieure) 2001-18, DELTA (Ecole normale supérieure).
  8. David M. Cutler & Elizabeth Richardson, 1997. "Measuring the Health of the U.S. Population," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 28(1997 Micr), pages 217-282.
  9. Samuel H. Preston, 1980. "Causes and Consequences of Mortality Declines in Less Developed Countries during the Twentieth Century," NBER Chapters, in: Population and Economic Change in Developing Countries, pages 289-360 National Bureau of Economic Research, Inc.
  10. Grossman, Michael, 1972. "On the Concept of Health Capital and the Demand for Health," Journal of Political Economy, University of Chicago Press, University of Chicago Press, vol. 80(2), pages 223-55, March-Apr.
  11. Kristina Burström & Magnus Johannesson & Finn Diderichsen, 2003. "The value of the change in health in Sweden 1980|81 to 1996|97," Health Economics, John Wiley & Sons, Ltd., vol. 12(8), pages 637-654.
  12. Steve Bond, 2002. "Dynamic panel data models: a guide to microdata methods and practice," CeMMAP working papers, Centre for Microdata Methods and Practice, Institute for Fiscal Studies CWP09/02, Centre for Microdata Methods and Practice, Institute for Fiscal Studies.
  13. Mushfiq Mobarak, Ahmed & Rajkumar, Andrew Sunil & Cropper, Maureen, 2005. "The political economy of health services provision and access in Brazil," Policy Research Working Paper Series 3508, The World Bank.
  14. Thomas Merrick, 1985. "The effect of piped water on early childhood mortality in Urban Brazil, 1970 to 1976," Demography, Springer, Springer, vol. 22(1), pages 1-24, February.
  15. repec:reg:wpaper:282 is not listed on IDEAS
  16. repec:reg:rpubli:282 is not listed on IDEAS
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Citations

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Cited by:
  1. Amrita Ghatak, 2010. "Health, Labour Supply and Wages: A Critical Review of Literature," Working Papers, Institute for Social and Economic Change, Bangalore 244, Institute for Social and Economic Change, Bangalore.
  2. Casabonne, Ursula & Kenny, Charles, 2012. "The Best Things in Life are (Nearly) Free: Technology, Knowledge, and Global Health," World Development, Elsevier, Elsevier, vol. 40(1), pages 21-35.
  3. RICCI Francesco & ZACHARIADIS Marios, 2009. "Longevity and Education Externalities: A Macroeconomic Perspective," LERNA Working Papers, LERNA, University of Toulouse 09.02.278, LERNA, University of Toulouse.
  4. Rocha, Romero & Soares, Rodrigo R., 2009. "Evaluating the Impact of Community-Based Health Interventions: Evidence from Brazil's Family Health Program," IZA Discussion Papers 4119, Institute for the Study of Labor (IZA).
  5. Paula C. Pereda & Tatiane A. de Menezes & Denisard Alves, 2014. "Climate Change Impacts on Birth Outcomes in Brazil," IDB Publications 84775, Inter-American Development Bank.
  6. Ana Barufi & Eduardo Haddad & Antonio Paez, 2011. "Regional dimensions of infant mortality in Brazil," ERSA conference papers ersa10p198, European Regional Science Association.
  7. André Martínez & Carolina Rodríguez-Zamora, 2011. "An Evaluation of the 1997 Fiscal Decentralization Reform in Mexico: The Case of the Health Sector," Working Papers, Banco de México 2011-16, Banco de México.
  8. Gonçalves, Sónia, 2014. "The Effects of Participatory Budgeting on Municipal Expenditures and Infant Mortality in Brazil," World Development, Elsevier, Elsevier, vol. 53(C), pages 94-110.
  9. Daniel R.C. Cerqueira & Rodrigo R. Soares, 2012. "The Welfare Cost of Homicides in Brazil: Accounting for Heterogeneity in the Willingness to Pay for Mortality Reductions," Textos para discussão, Department of Economics PUC-Rio (Brazil) 600, Department of Economics PUC-Rio (Brazil).
  10. Francesco Ricci & Marios Zachariadis, 2008. "Longevity and Education: A Macroeconomic Perspective," University of Cyprus Working Papers in Economics, University of Cyprus Department of Economics 1-2008, University of Cyprus Department of Economics.
  11. Lionel Kesztenbaum & Jean-Laurent Rosenthal, 2014. "Income versus Sanitation; Mortality Decline in Paris, 1880-1914," PSE Working Papers halshs-01018594, HAL.
  12. Agha Akram & Sheila Olmstead, 2011. "The Value of Household Water Service Quality in Lahore, Pakistan," Environmental & Resource Economics, European Association of Environmental and Resource Economists, European Association of Environmental and Resource Economists, vol. 49(2), pages 173-198, June.
  13. Sheila M. Olmstead, 2010. "The Economics of Water Quality," Review of Environmental Economics and Policy, Association of Environmental and Resource Economists, vol. 4(1), pages 44-62, Winter.

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