Economic growth and its effect on public health
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 period t is equal to that of period t+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.
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Volume (Year): 36 (2009)
Issue (Month): 3 (January)
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