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Health and economic development—evidence from the introduction of public health care

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  • Anthony Strittmatter

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  • Uwe Sunde

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Abstract

This paper investigates the causal effect of improvements in health on economic development using a long panel of European countries. Identification is based on the particular timing of the introduction of public health care systems in different countries, which is the random outcome of a political process. We document that the introduction of public health care systems had a significant immediate effect on health dynamics proxied by infant mortality and crude death rates. The findings suggest that health improvements had a positive effect on growth in income per capita and aggregate income. Copyright Springer-Verlag Berlin Heidelberg 2013

Suggested Citation

  • Anthony Strittmatter & Uwe Sunde, 2013. "Health and economic development—evidence from the introduction of public health care," Journal of Population Economics, Springer;European Society for Population Economics, vol. 26(4), pages 1549-1584, October.
  • Handle: RePEc:spr:jopoec:v:26:y:2013:i:4:p:1549-1584
    DOI: 10.1007/s00148-012-0450-8
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    Citations

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    Cited by:

    1. Laurent Brembilla, 2016. "Endogenous lifetime and economic growth: the roleof the tax rate," Economic Theory Bulletin, Springer;Society for the Advancement of Economic Theory (SAET), vol. 4(2), pages 247-263, October.
    2. Otrachshenko, Vladimir & Popova, Olga & Solomin, Pavel, 2017. "Health Consequences of the Russian Weather," Ecological Economics, Elsevier, vol. 132(C), pages 290-306.
    3. Föllmi, Reto & Minsch, Rudolf & Schnell, Fabian, 2016. "What Determines Price Changes and the Distribution of Prices? Evidence from the Swiss CPI," Economics Working Paper Series 1610, University of St. Gallen, School of Economics and Political Science.
    4. Théophile Azomahou & Bity Diene & Mbaye Diene & Luc Soete, 2015. "Optimal health investment and preference structure," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 60(3), pages 521-565, November.
    5. repec:spr:soinre:v:133:y:2017:i:2:d:10.1007_s11205-016-1389-z is not listed on IDEAS
    6. Driva, Anastasia & Bauernschuster, Stefan & Hornung, Erik, 2016. "Bismarck’s Health Insurance and the Mortality Decline," Annual Conference 2016 (Augsburg): Demographic Change 145577, Verein für Socialpolitik / German Economic Association.
    7. Ahsan, Henna & Idrees, Dr Muhammad, 2014. "Impact of Health on Earnings: Individual and District Level Analysis for Pakistan," MPRA Paper 56769, University Library of Munich, Germany, revised 20 Jun 2014.
    8. Lee Yong-Shik, 2015. "Call for a New Analytical Model for Law and Development," The Law and Development Review, De Gruyter, vol. 8(1), pages 1-67, June.

    More about this item

    Keywords

    Health; Mortality; Economic development; Growth; Public health systems care; I10; J10; O11; N13;

    JEL classification:

    • I10 - Health, Education, and Welfare - - Health - - - General
    • J10 - Labor and Demographic Economics - - Demographic Economics - - - General
    • O11 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development
    • N13 - Economic History - - Macroeconomics and Monetary Economics; Industrial Structure; Growth; Fluctuations - - - Europe: Pre-1913

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