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Economic growth and health: direct impact or reverse causation?

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  • Berta Rivera
  • Luis Currais

Abstract

The purpose of this paper is to identify the role of health status in productivity. In order to check the existence of reverse causation suggested by previous studies the Hausman test was carried out and different sets of instruments were used as exogenous determinants of health expenditure. Variables related to health expenditure were used to estimate the elasticity and these produced accepted results. Evidence was obtained to support the positive effect of health on economic growth.

Suggested Citation

  • Berta Rivera & Luis Currais, 1999. "Economic growth and health: direct impact or reverse causation?," Applied Economics Letters, Taylor & Francis Journals, vol. 6(11), pages 761-764.
    • Handle: RePEc:taf:apeclt:v:6:y:1999:i:11:p:761-764
    DOI: 10.1080/135048599352367
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    1. Kyriacou, George A., 1991. "Level and Growth Effects of Human Capital: A Cross-Country Study of the Convergence Hypothesis," Working Papers 91-26, C.V. Starr Center for Applied Economics, New York University.
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