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Explaining the interrelations between health, education and standards of living in Portugal. A simultaneous equation approach

  • Ana Poças

    (Polytechnic Institute of Guarda, Portugal and UDI)

  • Elias Soukiazis

    ()

    (Faculty of Economics, University of Coimbra, Portugal and GEMF)

The aim of this paper is to analyze the links between health status, education and economic growth in Portugal. Focus is given to the achievements made in infant mortality rate which represents the most significant reduction among the OECD countries in the last decades. While this very positive performance is a direct consequence of the investments made in the health sector, it is also important to note that it is a result of other socioeconomic factors outside the health system (mainly in the education system) that have contributed significantly to an improvement of the living conditions. So, to a complete understanding of the Portuguese infant mortality decline we must consider in our analysis the potential cumulative causation effects between health, education and per capita income growth. Having this in mind, in this paper we use a three equation model to determine simultaneously the interactions between infant mortality rate, education and per capita income growth. Our empirical evidence shows that the proposed model is adequate to highlight the potential links between these core factors.

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Paper provided by GEMF - Faculdade de Economia, Universidade de Coimbra in its series GEMF Working Papers with number 2012-06.

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Length: 37 pages
Date of creation: May 2012
Date of revision:
Publication status: Published in International Journal of Public Policy 9(3): 167-187, 2013.
Handle: RePEc:gmf:wpaper:2012-06
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  1. Pritchett, Lant & Summers, Lawrence H., 1993. "Wealthier is healthier," Policy Research Working Paper Series 1150, The World Bank.
  2. N. Gregory Mankiw & David Romer & David N. Weil, 1990. "A Contribution to the Empirics of Economic Growth," NBER Working Papers 3541, National Bureau of Economic Research, Inc.
  3. Bernard Fingleton, 2000. "Convergence: International comparisons based on a simultaneous equation model with regional effects," International Review of Applied Economics, Taylor & Francis Journals, vol. 14(3), pages 285-305.
  4. Jusot, Florence & Kunst, Anton E. & Leinsalu, Mall & Menvielle, Gwenn & Schaap, Maartje M. & Roskam, Albert-Jan R. & Stirbu, Irina & Mackenbach, Johan P., 2008. "Socioeconomic Inequalities in Health in 22 European Countries," Economics Papers from University Paris Dauphine 123456789/10510, Paris Dauphine University.
  5. Elias Soukiazis & Micaela Antunes, 2013. "Growth Performance in Portugal since the 1960s: A Simultaneous Equation Approach with Cumulative Causation Characteristics," Journal of Economic Issues, M.E. Sharpe, Inc., vol. 47(1), pages 169-192, March.
  6. David Fielding & Sebastian Torres, 2006. "A simultaneous equation model of economic development and income inequality," Journal of Economic Inequality, Springer, vol. 4(3), pages 279-301, December.
  7. Pedro Rosa Dias, 2009. "Inequality of opportunity in health: evidence from a UK cohort study," Health Economics, John Wiley & Sons, Ltd., vol. 18(9), pages 1057-1074.
  8. Sarah Ssewanyana & Stephen D. Younger, 2008. "Infant Mortality in Uganda: Determinants, Trends and the Millennium Development Goals," Journal of African Economies, Centre for the Study of African Economies (CSAE), vol. 17(1), pages 34-61, January.
  9. George Psacharopoulos & Harry Anthony Patrinos, 2004. "Returns to investment in education: a further update," Education Economics, Taylor & Francis Journals, vol. 12(2), pages 111-134.
  10. David Fielding & Sebastian Torres, 2009. "Health, Wealth, Fertility, Education, and Inequality," Review of Development Economics, Wiley Blackwell, vol. 13(1), pages 39-55, 02.
  11. Gregory, Paul R & Campbell, John M & Cheng, Benjamin S, 1972. "A Simultaneous Equation Model of Birth Rates in the United States," The Review of Economics and Statistics, MIT Press, vol. 54(4), pages 374-80, November.
  12. Adams, Peter & Hurd, Michael D. & McFadden, Daniel & Merrill, Angela & Ribeiro, Tiago, 2003. "Healthy, wealthy, and wise? Tests for direct causal paths between health and socioeconomic status," Journal of Econometrics, Elsevier, vol. 112(1), pages 3-56, January.
  13. Cutler, David M. & Lleras-Muney, Adriana, 2010. "Understanding differences in health behaviors by education," Journal of Health Economics, Elsevier, vol. 29(1), pages 1-28, January.
  14. Cutler, David M. & Lleras-Muney, Adriana, 2010. "Understanding Differences in Health Behaviors by Education," Scholarly Articles 5344195, Harvard University Department of Economics.
  15. Christopher F Baum & Mark E. Schaffer & Steven Stillman, 2007. "Enhanced routines for instrumental variables/generalized method of moments estimation and testing," Stata Journal, StataCorp LP, vol. 7(4), pages 465-506, December.
  16. Aurora Teixeira & Natércia Fortuna, 2003. "Human Capital, Innovation Capability and Economic Growth," FEP Working Papers 131, Universidade do Porto, Faculdade de Economia do Porto.
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