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Health Financing Mechanisms, Access to Health and Economic Growth


  • Bender, Katja


The paper analyzes the comparative effects of alternative health financing mechanisms on economic growth within a two-sector model with human capital. The transitional growth effects of a social insurance system are stronger than those of an out-of-pocket payment system. A private health insurance system ranks 'in between'. If physical capital relative to health is abundant, investments in health have stronger growth effects, which points to the relevance of health investments in particular for developing countries. The relative advantage of a health financing system in the long run depends on the relative amount of investment in health within each system.

Suggested Citation

  • Bender, Katja, 2011. "Health Financing Mechanisms, Access to Health and Economic Growth," IEE Working Papers 192, Institut fuer Entwicklungsforschung und Entwicklungspolitik, Ruhr-Universitaet Bochum.
  • Handle: RePEc:bom:ieewps:192

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    References listed on IDEAS

    1. Faguet, Jean-Paul, 2014. "Decentralization and Governance," World Development, Elsevier, vol. 53(C), pages 2-13.
    2. Blair, Harry, 2000. "Participation and Accountability at the Periphery: Democratic Local Governance in Six Countries," World Development, Elsevier, vol. 28(1), pages 21-39, January.
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    More about this item


    Economic growth; Health; Health financing; Human capital; Social insurance;

    JEL classification:

    • E24 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity
    • I15 - Health, Education, and Welfare - - Health - - - Health and Economic Development
    • H51 - Public Economics - - National Government Expenditures and Related Policies - - - Government Expenditures and Health
    • O11 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development
    • O41 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - One, Two, and Multisector Growth Models


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