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Health, labour productivity and growth

  • Muysken, Joan
  • Yetkiner, I. Hakan
  • Ziesemer, Thomas

    (Groningen University)

Under the standard neo-classical growth framework, conditional convergence studies assume that a country with a higher initial human capital among others \'performs\' better. Nevertheless the growth implications of health, another component of human capital, compared to education, have not been investigated thoroughly within the optimum growth framework yet. The aim of this study is to show rigorously the positive association between per capita income and health status of an economy and thereby provide a theoretical background for using \'health\' variables in conditional convergence analyses. This positive relationship between health and per capita output is first shown in the standard neo-classical growth framework where the health status is exogenously given. Endogenising health then enables us to analyse the impact of optimal expenditure on health care on steady state growth and transition dynamics

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File URL: http://irs.ub.rug.nl/ppn/241229782
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Paper provided by University of Groningen, CCSO Centre for Economic Research in its series CCSO Working Papers with number 200015.

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Date of creation: 1999
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Handle: RePEc:dgr:rugccs:200015
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  1. Knowles, Stephen & Owen, P. Dorian, 1995. "Health capital and cross-country variation in income per capita in the Mankiw-Romer-Weil model," Economics Letters, Elsevier, vol. 48(1), pages 99-106, April.
  2. Cuddington, John T. & Hancock, John D. & Rogers, Carol Ann, 1994. "A dynamic aggregative model of the AIDS epidemic with possible policy interventions," Journal of Policy Modeling, Elsevier, vol. 16(5), pages 473-496, October.
  3. Tjalling C. Koopmans, 1963. "On the Concept of Optimal Economic Growth," Cowles Foundation Discussion Papers 163, Cowles Foundation for Research in Economics, Yale University.
  4. David E. Bloom & Ajay S. Mahal, 1995. "Does the AIDS Epidemic Really Threaten Economic Growth?," NBER Working Papers 5148, National Bureau of Economic Research, Inc.
  5. Knowles, Stephen & Owen, P Dorian, 1997. "Education and Health in an Effective-Labour Empirical Growth Model," The Economic Record, The Economic Society of Australia, vol. 73(223), pages 314-28, December.
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