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Economic growth and its effect on public health

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  • Nissim Ben‐David

Abstract

Purpose - The purpose of this paper is to construct a theoretical framework for analyzing the connection between economic growth, demand for medical care, and economic health. Design/methodology/approach - The economy is composed of two sectors, one of medical care goods and the other of consumption goods. Equilibrium is defined when capital per‐capita in periodtis equal to that of periodt+1. Findings - An equilibrium path is found for the demand for consumption and for medical care goods, per‐capita level of health, capital, savings, trade balance, and net foreign assets. Research limitations/implications - The importance of the paper is in its ability to analyze the change in public health along the growth path of the economy. Practical implications - An example and a simulation are presented in order to confirm the theoretical results and demonstrate that the model can be used for empirical analysis. Originality/value - The paper constructs a connection between economic growth and health sector economic developments.

Suggested Citation

  • Nissim Ben‐David, 2009. "Economic growth and its effect on public health," International Journal of Social Economics, Emerald Group Publishing Limited, vol. 36(3), pages 252-273, February.
    • Handle: RePEc:eme:ijsepp:v:36:y:2009:i:3:p:252-273
    DOI: 10.1108/03068290910932747
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    References listed on IDEAS

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    1. Robert J. Barro, 1998. "Determinants of Economic Growth: A Cross-Country Empirical Study," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262522543, December.
    2. Arora, Suchit, 2001. "Health, Human Productivity, And Long-Term Economic Growth," The Journal of Economic History, Cambridge University Press, vol. 61(3), pages 699-749, September.
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