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Health, Lifestyle and Growth

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Author Info

  • 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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Related research

Keywords: health; lifestyles; growth;

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  1. Paul Contoyannis & Andrea M Jones, . "Socioeconomic Status, Health and Lifestyle," Discussion Papers 01/19, Department of Economics, University of York.
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