Health, growth and welfare: a theoritical appraisal of the long run impact of medical R&D
AbstractThis paper aims at providing a simple economic framework to address the question of the optimal share of investments in medical R&D in total public spending. In order to capture the long-run impact of tax-financed medical R&D on the growth rate, we develop an endogenous growth model in the spirit of Barro . The model focuses on the optimal sharing of public resources between consumption and (non-health) investment, medical R&D and other health expenditures. It emphasizes the key role played by the public health-related R&D in enhancing economic growth and welfare in the long run.
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Bibliographic InfoPaper provided by University Library of Munich, Germany in its series MPRA Paper with number 33789.
Date of creation: 06 Aug 2011
Date of revision:
Public health ; Medical R&D; Public spending; Endogenous growth;
Find related papers by JEL classification:
- H51 - Public Economics - - National Government Expenditures and Related Policies - - - Government Expenditures and Health
- I18 - Health, Education, and Welfare - - Health - - - Government Policy; Regulation; Public Health
- H23 - Public Economics - - Taxation, Subsidies, and Revenue - - - Externalities; Redistributive Effects; Environmental Taxes and Subsidies
- O31 - Economic Development, Technological Change, and Growth - - Technological Change; Research and Development; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives
This paper has been announced in the following NEP Reports:
- NEP-ALL-2011-10-09 (All new papers)
- NEP-DGE-2011-10-09 (Dynamic General Equilibrium)
- NEP-FDG-2011-10-09 (Financial Development & Growth)
- NEP-HEA-2011-10-09 (Health Economics)
- NEP-INO-2011-10-09 (Innovation)
- NEP-PBE-2011-10-09 (Public Economics)
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