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Health and the Evolution of Welfare across Brazilian Municipalities

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Author Info
Rodrigo R. Soares () (University of Maryland, Catholic University of Rio de Janeiro, NBER and IZA)

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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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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:
Handle: RePEc:iza:izadps:dp2771

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

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Find related papers by JEL classification:
I12 - Health, Education, and Welfare - - Health - - - Health Production
I31 - Health, Education, and Welfare - - Welfare and Poverty - - - General Welfare
I38 - Health, Education, and Welfare - - Welfare and Poverty - - - Government Programs; Provision and Effects of Welfare Programs
J17 - Labor and Demographic Economics - - Demographic Economics - - - Value of Life; Foregone Income
O15 - Economic Development, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration
O54 - Economic Development, Technological Change, and Growth - - Economywide Country Studies - - - Latin America; Caribbean

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References listed on IDEAS
Please 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.:
  1. 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, Blackwell Publishing, vol. 58(2), pages 277-97, April. [Downloadable!] (restricted)
  2. François Bourguignon & Christian Morrisson, 2002. "Inequality Among World Citizens: 1820–1992," American Economic Review, American Economic Association, vol. 92(4), pages 727-744, September. [Downloadable!]
  3. Rosen, Sherwin, 1988. " The Value of Changes in Life Expectancy," Journal of Risk and Uncertainty, Springer, vol. 1(3), pages 285-304, September.
    Other versions:
  4. 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 223-55, March-Apr. [Downloadable!] (restricted)
  5. 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, vol. 95(1), pages 277-291, March. [Downloadable!]
    Other versions:
  6. 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. [Downloadable!] (restricted)
    Other versions:
  7. 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. [Downloadable!]
  8. 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. [Downloadable!]
  9. Alves, Denisard & Belluzzo, Walter, 2004. "Infant mortality and child health in Brazil," Economics and Human Biology, Elsevier, vol. 2(3), pages 391-410, December. [Downloadable!] (restricted)
  10. 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. [Downloadable!]
  11. Steve Bond, 2002. "Dynamic panel data models: a guide to microdata methods and practice," CeMMAP working papers CWP09/02, Centre for Microdata Methods and Practice, Institute for Fiscal Studies. [Downloadable!]
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Cited by:
(explanations, Please 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.)

  1. RICCI Francesco & ZACHARIADIS Marios, 2009. "Longevity and Education Externalities: A Macroeconomic Perspective," Working Papers 09.02.278, LERNA, University of Toulouse. [Downloadable!]
  2. 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). [Downloadable!]
  3. Francesco Ricci & Marios Zachariadis, 2008. "Longevity and Education: A Macroeconomic Perspective," University of Cyprus Working Papers in Economics 1-2008, University of Cyprus Department of Economics. [Downloadable!]
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