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Modeling the effects of health on economic growth

Listed author(s):
  • Bhargava, Alok
  • Jamison, Dean T.
  • Lau, Lawrence J.
  • Murray, Christopher J. L.

AbstractThis paper investigates the effects of health indicators such as adult survival rates (ASR) on GDP growth rates at 5-year intervals in several countries. Panel data were analyzed on GDP series based on purchasing power adjustments and on exchange rates. First, we developed a framework for modeling the inter-relationships between GDP growth rates and explanatory variables by re-examining the life expectancy–income relationship. Second, models for growth rates were estimated taking into account the interaction between ASR and lagged GDP level; issues of endogeneity and reverse causality were addressed. Lastly, we computed confidence intervals for the effect of ASR on growth rate and applied a test for parameter stability. The results showed positive effects of ASR on GDP growth rates in low-income countries.

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Article provided by Elsevier in its journal Journal of Health Economics.

Volume (Year): 20 (2001)
Issue (Month): 3 (May)
Pages: 423-440

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Handle: RePEc:eee:jhecon:v:20:y:2001:i:3:p:423-440
Contact details of provider: Web page: http://www.elsevier.com/locate/inca/505560

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  1. Alok Bhargava, 1991. "Identification and Panel Data Models with Endogenous Regressors," Review of Economic Studies, Oxford University Press, vol. 58(1), pages 129-140.
  2. Sargan, J D, 1980. "Some Tests of Dynamic Specification for a Single Equation," Econometrica, Econometric Society, vol. 48(4), pages 879-897, May.
  3. John Luke Gallup & Jeffrey D. Sachs & Andrew D. Mellinger, 1998. "Geography and Economic Development," Harvard Institute of Economic Research Working Papers 1856, Harvard - Institute of Economic Research.
  4. Fogel, Robert W, 1994. "Economic Growth, Population Theory, and Physiology: The Bearing of Long-Term Processes on the Making of Economic Policy," American Economic Review, American Economic Association, vol. 84(3), pages 369-395, June.
  5. Bhargava, Alok, 2003. "Family planning, gender differences and infant mortality: evidence from Uttar Pradesh, India," Journal of Econometrics, Elsevier, vol. 112(1), pages 225-240, January.
  6. Christensen, Laurits R & Jorgenson, Dale W & Lau, Lawrence J, 1973. "Transcendental Logarithmic Production Frontiers," The Review of Economics and Statistics, MIT Press, vol. 55(1), pages 28-45, February.
  7. John Strauss & Duncan Thomas, 1998. "Health, Nutrition, and Economic Development," Journal of Economic Literature, American Economic Association, vol. 36(2), pages 766-817, June.
  8. Robert J. Barro, 2013. "Inflation and Economic Growth," Annals of Economics and Finance, Society for AEF, vol. 14(1), pages 121-144, May.
  9. Bhargava, Alok & Sargan, J D, 1983. "Estimating Dynamic Random Effects Models from Panel Data Covering Short Time Periods," Econometrica, Econometric Society, vol. 51(6), pages 1635-1659, November.
  10. Bhargava, Alok, 1997. "Nutritional status and the allocation of time in Rwandese households," Journal of Econometrics, Elsevier, vol. 77(1), pages 277-295, March.
  11. Sala-i-Martin, Xavier, 1995. "The Classical Approach to Convergence Analysis," CEPR Discussion Papers 1254, C.E.P.R. Discussion Papers.
  12. John Luke Gallup & Jeffrey D. Sachs & Andrew D. Mellinger, 1998. "Geography and Economic Development," NBER Working Papers 6849, National Bureau of Economic Research, Inc.
  13. Barro, Robert J & Lee, Jong Wha, 1996. "International Measures of Schooling Years and Schooling Quality," American Economic Review, American Economic Association, vol. 86(2), pages 218-223, May.
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