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Health progress and economic growth in the USA: the continuous wavelet analysis

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  • Wen-Yi Chen

    () (National Taichung University of Science and Technology)

Abstract

Abstract This study employs the continuous wavelet analysis to investigate the dynamic relationship between health progress and economic growth over the period of 1934–2010 in the USA. Our findings reconcile the counter-cyclicality of longevity in the short run with the pro-cyclicality of longevity in the long run with respect to the business cycle. Additionally, four causal relationships between health progress and economic growth: the income view, health view, feedback view, and neutrality hypotheses are identified. Our results show that the income view, health view, and feedback hypotheses could only be validated for some specific time periods and conditions. None of these four hypotheses regarding causality of health progress and economic growth prevail over the entire period of 1934–2010 in the USA.

Suggested Citation

  • 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.
  • Handle: RePEc:spr:empeco:v:50:y:2016:i:3:d:10.1007_s00181-015-0955-6
    DOI: 10.1007/s00181-015-0955-6
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    Cited by:

    1. Hudgins, David & Crowley, Patrick M., 2017. "Modelling a small open economy using a wavelet-based control model," Research Discussion Papers 32/2017, Bank of Finland.
    2. Wen-Yi CHEN & Yu-Hui LIN, 2016. "Co-Movement of Healthcare Financing in OECD Countries: Evidence from Discrete Wavelet Analyses," Journal for Economic Forecasting, Institute for Economic Forecasting, vol. 0(3), pages 40-56, September.
    3. repec:eee:reveco:v:49:y:2017:i:c:p:484-498 is not listed on IDEAS
    4. repec:eee:phsmap:v:490:y:2018:i:c:p:1028-1045 is not listed on IDEAS

    More about this item

    Keywords

    Brenner hypothesis; Health progress; Economic growth; Business cycle; Continuous wavelet analysis;

    JEL classification:

    • C4 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: Special Topics
    • E3 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles
    • I1 - Health, Education, and Welfare - - Health
    • J1 - Labor and Demographic Economics - - Demographic Economics
    • N3 - Economic History - - Labor and Consumers, Demography, Education, Health, Welfare, Income, Wealth, Religion, and Philanthropy
    • O1 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development

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