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Health and economic development-evidence from the introduction of public health care

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  • Strittmatter, Anthony
  • Sunde, Uwe

Abstract

This paper investigates the causal effect of improvements in health on economic development using a long panel of European countries. Identification is based on the particular timing of the introduction of public health care systems in different countries, which is the random outcome of a political process. We document that the introduction of public health care systems had a significant immediate effect on health dynamics proxied by infant mortality and crude death rates. The findings suggest that health improvements had a positive effect on growth in income per capita and aggregate income.

Suggested Citation

  • Strittmatter, Anthony & Sunde, Uwe, 2013. "Health and economic development-evidence from the introduction of public health care," Munich Reprints in Economics 19593, University of Munich, Department of Economics.
    • Handle: RePEc:lmu:muenar:19593
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    JEL classification:

    • I10 - Health, Education, and Welfare - - Health - - - General
    • J10 - Labor and Demographic Economics - - Demographic Economics - - - General
    • O11 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development
    • N13 - Economic History - - Macroeconomics and Monetary Economics; Industrial Structure; Growth; Fluctuations - - - Europe: Pre-1913

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