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

Author

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  • Ana Poças

    (Polytechnic Institute of Guarda, Portugal and UDI)

  • Elias Soukiazis

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

Abstract

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.

Suggested Citation

  • Ana Poças & Elias Soukiazis, 2012. "Explaining the interrelations between health, education and standards of living in Portugal: A simultaneous equation approach," GEMF Working Papers 2012-06, GEMF, Faculty of Economics, University of Coimbra.
    • Handle: RePEc:gmf:wpaper:2012-06
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    Cited by:

    1. Michael Takudzwa Pasara & Tapiwa Kelvin Mutambirwa & Nolutho Diko, 2020. "The Trivariate Causality among Education, Health, and Economic Growth in Zimbabwe," Sustainability, MDPI, vol. 12(4), pages 1-15, February.
    2. Runu Bhakta, 2014. "Impact of public spending on health and education of children in India: A Panel data simultaneous equation model," Indira Gandhi Institute of Development Research, Mumbai Working Papers 2014-049, Indira Gandhi Institute of Development Research, Mumbai, India.

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    More about this item

    Keywords

    Health; Education; Standards of Living; Simultaneous Equations System.;
    All these keywords.

    JEL classification:

    • H51 - Public Economics - - National Government Expenditures and Related Policies - - - Government Expenditures and Health
    • I12 - Health, Education, and Welfare - - Health - - - Health Behavior
    • I18 - Health, Education, and Welfare - - Health - - - Government Policy; Regulation; Public Health
    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models

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