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Health, Lifestyle and Growth

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  • COPPOLA, Gianluigi

    ()
    (CELPE (Centre of Labour Economics and Economic Policy), University of Salerno, Italy)

Abstract

In this paper I will try to explain why lifestyle may have a positive impact on economic growth. First of all, I consider health affecting consumer’s utility and then define a Health Production Function where health is the output and consumer good the input. In this approach a parameter named Lifestyle Return to Scale (LRS) is defined. The first result is that an increase of consumer’s personal income may have a positive or a negative effect on health. In other words health may be a normal or an inferior good. It depends on Lifestyle Return to Scale- According to this result, I compute a health multiplier and then modify the Solow Growth Model in which health is labour-augmenting. The result is a model in which the Lifestyle Return to Scale positively affects the income per capita and the income per capita growth.

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Bibliographic Info

Paper provided by CELPE - Centre of Labour Economics and Economic Policy, University of Salerno, Italy in its series CELPE Discussion Papers with number 115.

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Length: 33 pages
Date of creation: 2010
Date of revision:
Handle: RePEc:sal:celpdp:0115

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Keywords: health; lifestyles; growth;

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  1. Gary S. Becker & Michael Grossman & Kevin M. Murphy, 1990. "An Empirical Analysis of Cigarette Addiction," University of Chicago - George G. Stigler Center for Study of Economy and State 61, Chicago - Center for Study of Economy and State.
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  4. Paul Contoyannis & Andrea M Jones, . "Socioeconomic Status, Health and Lifestyle," Discussion Papers 01/19, Department of Economics, University of York.
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  7. Sergio Destefanis & Vania Sena, 2006. "Health, Capabilities and Functionings: An Empirical Analysis for the UK," CSEF Working Papers 151, Centre for Studies in Economics and Finance (CSEF), University of Naples, Italy.
  8. Viscusi, W Kip & Evans, William N, 1990. "Utility Functions That Depend on Health Status: Estimates and Economic Implications," American Economic Review, American Economic Association, vol. 80(3), pages 353-74, June.
  9. Mas-Colell, Andreu & Whinston, Michael D. & Green, Jerry R., 1995. "Microeconomic Theory," OUP Catalogue, Oxford University Press, number 9780195102680.
  10. Blondel, Serge & Loheac, Youenn & Rinaudo, Stephane, 2007. "Rationality and drug use: An experimental approach," Journal of Health Economics, Elsevier, vol. 26(3), pages 643-658, May.
  11. Berta Rivera & Luis Currais, 1999. "Economic growth and health: direct impact or reverse causation?," Applied Economics Letters, Taylor & Francis Journals, vol. 6(11), pages 761-764.
  12. 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.
  13. Strauss, John, 1986. "Does Better Nutrition Raise Farm Productivity?," Journal of Political Economy, University of Chicago Press, vol. 94(2), pages 297-320, April.
  14. Rivera, Berta & Currais, Luis, 1999. "Income Variation and Health Expenditure: Evidence for OECD Countries," Review of Development Economics, Wiley Blackwell, vol. 3(3), pages 258-67, October.
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