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Public Capital, Health Persistence and Poverty Traps

Growth dynamics and health outcomes are studied in a three period overlapping generations model with public capital. Reproductive agents face a non-zero probability of death in both childhood and adulthood. In addition to working, adults allocate time to their own health and child rearing. Health status in adulthood depends on health in childhood. With partial persistence in health, pure stagnation may occur. With full persistence, a stagnating equilibrium with low growth and high fertility may result from poor access to public capital. With threshold effects in health status, multiple growth regimes may emerge. A reallocation of public spending toward health or infrastructure may shift the economy from a low-growth equilibrium to a high-growth, low-fertility steady state.

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File URL: http://www.socialsciences.manchester.ac.uk/medialibrary/cgbcr/discussionpapers/dpcgbcr115.pdf
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Paper provided by Economics, The Univeristy of Manchester in its series Centre for Growth and Business Cycle Research Discussion Paper Series with number 115.

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Length: 58 pages
Date of creation: 2009
Date of revision:
Handle: RePEc:man:cgbcrp:115
Contact details of provider: Postal: Manchester M13 9PL
Phone: (0)161 275 4868
Fax: (0)161 275 4812
Web page: http://www.socialsciences.manchester.ac.uk/subjects/economics/our-research/centre-for-growth-and-business-cycle-research/

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  1. BOUCEKKINE, Raouf & DESBORDES, Rodolphe & LATZER, Hélène, 2008. "How do epidemics induce behavioral changes?," CORE Discussion Papers 2008042, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
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  3. Jeon, Yongil & Rhyu, Sang-Young & Shields, Michael P., 2008. "Fertility in Sub-Saharan African Countries with Consideration to Health and Poverty," IZA Discussion Papers 3526, Institute for the Study of Labor (IZA).
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  7. Ken-ichi Hashimoto & Ken Tabata, 2005. "Health Infrastructure, Demographic Transition and Growth," Review of Development Economics, Wiley Blackwell, vol. 9(4), pages 549-562, November.
  8. Osang, Thomas & Sarkar, Jayanta, 2005. "Endogenous Mortality, Human Capital and Endogenous Growth," Departmental Working Papers 0511, Southern Methodist University, Department of Economics.
  9. BOUCEKKINE, Raouf & DESBORDES, Rodolphe & LATZER, Hélène, . "How do epidemics induce behavioral changes?," CORE Discussion Papers RP -2160, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
  10. Martin Salm & Daniel Schunk, 2008. "The role of childhood health for the intergenerational transmission of human capital: Evidence from administrative data," MEA discussion paper series 08164, Munich Center for the Economics of Aging (MEA) at the Max Planck Institute for Social Law and Social Policy.
  11. Bhattacharya, Joydeep & Qiao, Xue, 2005. "Public and Private Expenditures on Health in a Growth Model," Staff General Research Papers 12378, Iowa State University, Department of Economics.
  12. Silles, Mary A., 2009. "The causal effect of education on health: Evidence from the United Kingdom," Economics of Education Review, Elsevier, vol. 28(1), pages 122-128, February.
  13. Beck A. Taylor & Eric Dearing & Kathleen McCartney, 2004. "Incomes and Outcomes in Early Childhood," Journal of Human Resources, University of Wisconsin Press, vol. 39(4).
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