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Disease and Development Revisited

Listed author(s):
  • David E. Bloom
  • David Canning
  • Günther Fink

Acemoglu and Johnson (2007) present evidence that improvements in population health do not promote economic growth. We show that their result depends critically on the assumption that initial health has no causal effect on subsequent economic growth. We argue that such an effect is likely, primarily because childhood health affects adult productivity. In our augmented model, which includes initial health, the instrumental variable proposed by Acemoglu and Johnson has no significant predictive power for improvements in health and does not identify the effect of contemporaneous improvements in health on economic growth.

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File URL: http://dx.doi.org/10.1086/677189
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File URL: http://dx.doi.org/10.1086/677189
Download Restriction: Access to the online full text or PDF requires a subscription.

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Article provided by University of Chicago Press in its journal Journal of Political Economy.

Volume (Year): 122 (2014)
Issue (Month): 6 ()
Pages: 1355-1366

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Handle: RePEc:ucp:jpolec:doi:10.1086/677189
Contact details of provider: Web page: http://www.journals.uchicago.edu/JPE/

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  1. Peter Lorentzen & John McMillan & Romain Wacziarg, 2006. "Death and Development," 2006 Meeting Papers 61, Society for Economic Dynamics.
  2. Edward Miguel & Michael Kremer, 2004. "Worms: Identifying Impacts on Education and Health in the Presence of Treatment Externalities," Econometrica, Econometric Society, vol. 72(1), pages 159-217, 01.
  3. Cervellati, Matteo & Sunde, Uwe, 2011. "Life expectancy and economic growth: The role of the demographic transition," Munich Reprints in Economics 20078, University of Munich, Department of Economics.
  4. Blundell, R. & Bond, S., 1995. "Initial Conditions and Moment Restrictions in Dynamic Panel Data Models," Economics Papers 104, Economics Group, Nuffield College, University of Oxford.
  5. Philippe Aghion & Peter Howitt & Fabrice Murtin, 2011. "The Relationship Between Health and Growth: When Lucas Meets Nelson-Phelps," Review of Economics and Institutions, Università di Perugia, vol. 2(1).
  6. Cutler, David & Lleras-Muney, Adriana & Deaton, Angus, 2006. "The Determinants of Mortality," Scholarly Articles 2640588, Harvard University Department of Economics.
  7. Manuel Arellano & Stephen Bond, 1991. "Some Tests of Specification for Panel Data: Monte Carlo Evidence and an Application to Employment Equations," Review of Economic Studies, Oxford University Press, vol. 58(2), pages 277-297.
  8. Hoyt Bleakley, 2010. "Malaria Eradication in the Americas: A Retrospective Analysis of Childhood Exposure," American Economic Journal: Applied Economics, American Economic Association, vol. 2(2), pages 1-45, April.
  9. Marcia Caldas de Castro, 2001. "Changes in mortality and life expectancy: Some methodological issues," Mathematical Population Studies, Taylor & Francis Journals, vol. 9(3-4), pages 181-208.
  10. Daron Acemoglu & Simon Johnson, 2006. "Disease and Development: The Effect of Life Expectancy on Economic Growth," NBER Working Papers 12269, National Bureau of Economic Research, Inc.
  11. Jere R. Behrman & Mark R. Rosenzweig, 2004. "Returns to Birthweight," The Review of Economics and Statistics, MIT Press, vol. 86(2), pages 586-601, May.
  12. Joshua D. Angrist & Jörn-Steffen Pischke, 2009. "Mostly Harmless Econometrics: An Empiricist's Companion," Economics Books, Princeton University Press, edition 1, number 8769.
  13. Hoyt Bleakley, 2003. "Disease and Development: Evidence from the American South," Journal of the European Economic Association, MIT Press, vol. 1(2-3), pages 376-386, 04/05.
  14. Quamrul Ashraf & Ashley Lester & David Weil, 2008. "When Does Improving Health Raise GDP?," Working Papers 2008-7, Brown University, Department of Economics.
  15. David N. Well, 2007. "Accounting for the Effect Of Health on Economic Growth," The Quarterly Journal of Economics, Oxford University Press, vol. 122(3), pages 1265-1306.
  16. Case, Anne & Fertig, Angela & Paxson, Christina, 2005. "The lasting impact of childhood health and circumstance," Journal of Health Economics, Elsevier, vol. 24(2), pages 365-389, March.
  17. repec:kap:iaecre:v:10:y:2004:i:4:p:257-264 is not listed on IDEAS
  18. Miguel-Angel Martín & Agustín Herranz, 2004. "Human capital and economic growth in Spanish regions," International Advances in Economic Research, Springer;International Atlantic Economic Society, vol. 10(4), pages 257-264, November.
  19. James J. Heckman, 2007. "The Economics, Technology and Neuroscience of Human Capability Formation," NBER Working Papers 13195, National Bureau of Economic Research, Inc.
  20. Ben R. Craig & William E. Jackson & James B. Thomson, 2004. "On SBA-guaranteed lending and economic growth," Working Paper 0403, Federal Reserve Bank of Cleveland.
  21. Arie ten Cate, 2004. "Refinement of the partial adjustment model using continuous-time econometrics," CPB Discussion Paper 41, CPB Netherlands Bureau for Economic Policy Analysis.
  22. Bloom, David E. & Canning, David & Sevilla, Jaypee, 2004. "The Effect of Health on Economic Growth: A Production Function Approach," World Development, Elsevier, vol. 32(1), pages 1-13, January.
  23. repec:gdm:wpaper:2207 is not listed on IDEAS
  24. Hoyt Bleakley, 2006. "Malaria In The Americas: A Retrospective Analysis Of Childhood Exposure," DOCUMENTOS CEDE 003185, UNIVERSIDAD DE LOS ANDES-CEDE.
  25. Nickell, Stephen J, 1981. "Biases in Dynamic Models with Fixed Effects," Econometrica, Econometric Society, vol. 49(6), pages 1417-1426, November.
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