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The reversal of the relation between economic growth and health progress: Sweden in the 19th and 20th centuries

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  • Tapia Granados, José A.
  • Ionides, Edward L.

Abstract

Health progress, as measured by the decline in mortality rates and the increase in life expectancy, is usually conceived as related to economic growth, especially in the long run. In this investigation it is shown that economic growth is positively associated with health progress in Sweden throughout the 19th century. However, the relation becomes weaker as time passes and is completely reversed in the second half of the 20th century, when economic growth negatively affects health progress. The effect of the economy on health occurs mostly at lag 0 in the 19th century and is lagged up to 2 years in the 20th century. No evidence is found for economic effects on mortality at greater lags. These findings are shown to be robustly consistent across a variety of statistical procedures, including linear regression, spectral analysis, cross-correlation, and lag regression models. Models using inflation and unemployment as economic indicators reveal similar results. Evidence for reverse effects of health progress on economic growth is weak, and unobservable in the second half of the 20th century.

Suggested Citation

  • Tapia Granados, José A. & Ionides, Edward L., 2008. "The reversal of the relation between economic growth and health progress: Sweden in the 19th and 20th centuries," Journal of Health Economics, Elsevier, vol. 27(3), pages 544-563, May.
  • Handle: RePEc:eee:jhecon:v:27:y:2008:i:3:p:544-563
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    References listed on IDEAS

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    Cited by:

    1. Katja Hanewald, 2009. "Mortality modeling: Lee-Carter and the macroeconomy," SFB 649 Discussion Papers SFB649DP2009-008, Sonderforschungsbereich 649, Humboldt University, Berlin, Germany.
    2. repec:dem:demres:v:37:y:2017:i:25 is not listed on IDEAS
    3. Tapia Granados, José A. & Rodriguez, Javier M., 2015. "Health, economic crisis, and austerity: A comparison of Greece, Finland and Iceland," Health Policy, Elsevier, vol. 119(7), pages 941-953.
    4. Ainhoa Aparicio, 2014. "Newborn Health and the Business Cycle," CINCH Working Paper Series 1402, Universitaet Duisburg-Essen, Competent in Competition and Health.
    5. Wolfgang H. Reichmuth & Samad Sarferaz, 2008. "The Influence of the Business Cycle on Mortality," SFB 649 Discussion Papers SFB649DP2008-059, Sonderforschungsbereich 649, Humboldt University, Berlin, Germany.
    6. Katja Hanewald & Thomas Post & Helmut Gründl, 2011. "Stochastic Mortality, Macroeconomic Risks and Life Insurer Solvency," The Geneva Papers on Risk and Insurance - Issues and Practice, Palgrave Macmillan;The Geneva Association, vol. 36(3), pages 458-475, July.
    7. Ainhoa Aparicio & Libertad González Luna, 2013. "Newborn health and the business cycle: Is it good to be born in bad times?," Economics Working Papers 1374, Department of Economics and Business, Universitat Pompeu Fabra, revised Mar 2014.
    8. Christopher J. Ruhm, 2016. "Health Effects of Economic Crises," Health Economics, John Wiley & Sons, Ltd., vol. 25, pages 6-24, November.
    9. cyrine hannafi & Christophe Muller, 2016. "The Poverty-Economic Growth-Health Triangle," EcoMod2016 9587, EcoMod.
    10. Edwards, Ryan, 2008. "Who is hurt by procyclical mortality?," Social Science & Medicine, Elsevier, vol. 67(12), pages 2051-2058, December.
    11. Mylène Riva & Clare Bambra & Susan Easton & Sarah Curtis, 2011. "Hard times or good times? Inequalities in the health effects of economic change," International Journal of Public Health, Springer;Swiss School of Public Health (SSPH+), vol. 56(1), pages 3-5, February.
    12. Khan, Shumaisa S. & Timotijevic, Lada & Newton, Rachel & Coutinho, Daniela & Llerena, José Luis & Ortega, Santiago & Benighaus, Ludger & Hofmaier, Christian & Xhaferri, Zamira & de Boer, Alie & Urban,, 2016. "The framing of innovation among European research funding actors: Assessing the potential for ‘responsible research and innovation’ in the food and health domain," Food Policy, Elsevier, vol. 62(C), pages 78-87.
    13. Garth Heutel & Christopher J. Ruhm, 2016. "Air Pollution and Procyclical Mortality," Journal of the Association of Environmental and Resource Economists, University of Chicago Press, vol. 3(3), pages 667-706.
    14. Granados, José A. Tapia, 2010. "Politics and health in eight European countries: A comparative study of mortality decline under social democracies and right-wing governments," Social Science & Medicine, Elsevier, vol. 71(5), pages 841-850, September.
    15. van den Berg, Gerard J. & Paul, Alexander & Reinhold, Steffen, 2018. "Economic Conditions, Parental Employment and Health of Newborns," IZA Discussion Papers 11338, Institute for the Study of Labor (IZA).
    16. Christopher J. Ruhm, 2012. "Understanding the Relationship between Macroeconomic Conditions and Health," Chapters,in: The Elgar Companion to Health Economics, Second Edition, chapter 1 Edward Elgar Publishing.
    17. Wen-Yi Chen, 2016. "Health progress and economic growth in the USA: the continuous wavelet analysis," Empirical Economics, Springer, vol. 50(3), pages 831-855, May.
    18. repec:spr:soinre:v:134:y:2017:i:3:d:10.1007_s11205-016-1454-7 is not listed on IDEAS
    19. Biggs, Brian & King, Lawrence & Basu, Sanjay & Stuckler, David, 2010. "Is wealthier always healthier? The impact of national income level, inequality, and poverty on public health in Latin America," Social Science & Medicine, Elsevier, vol. 71(2), pages 266-273, July.
    20. Mikael Svensson & Niclas Krüger, 2012. "Mortality and economic fluctuations," Journal of Population Economics, Springer;European Society for Population Economics, vol. 25(4), pages 1215-1235, October.
    21. Awaworyi Churchill, Sefa & Ocloo, Janet Exornam & Siawor-Robertson, Diana, 2015. "Ethnic diversity makes me sick! An examination of ethnic diversity’s effect on health outcomes," EconStor Preprints 123721, ZBW - German National Library of Economics.
    22. Nguyen,Ha Minh & Nguyen,Huong, 2016. "Unemployment and mortality : evidence from the great recession," Policy Research Working Paper Series 7603, The World Bank.
    23. José Tapia granados, 2008. "Macroeconomic fluctuations and mortality in postwar Japan," Demography, Springer;Population Association of America (PAA), vol. 45(2), pages 323-343, May.
    24. Tapia Granados, José A., 2012. "Economic growth and health progress in England and Wales: 160 years of a changing relation," Social Science & Medicine, Elsevier, vol. 74(5), pages 688-695.

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