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Endogenous Health Investment, Saving and Growth - A theoretical study with an application to Chinese data


  • Chen, Yan

    () (Department of Economics)


The idea behind this thesis stems from the existing abundance of empirical studies suggesting the strong correlation between longevity and economic growth. In a simple two period overlappinggeneration framework, we establish a direct link between health investment and economic growth through endogenous survival rate. We find that health expenditure complements saving in equilibrium, thereby contributes to economic growth, which in turn leads to a further increase in health investment. The simulation with calibrated parameters also manifests the consistence between our results and the worldwide data as well as the fact of China.

Suggested Citation

  • Chen, Yan, 2009. "Endogenous Health Investment, Saving and Growth - A theoretical study with an application to Chinese data," HERO On line Working Paper Series 2007:8, Oslo University, Health Economics Research Programme.
  • Handle: RePEc:hhs:oslohe:2007_008

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    References listed on IDEAS

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    More about this item


    health investment; economic growth; China;

    JEL classification:

    • I31 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - General Welfare, Well-Being

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