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Health and the Evolution of Welfare across Brazilian Municipalities

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  • Rodrigo R. Soares

Abstract

This paper describes the pattern of reductions in mortality across Brazilian municipalities between 1970 and 2000, and analyzes its causes and consequences. It shows that, as in the international context, the relationship between income and life expectancy has shifted consistently in the recent past. But reductions in mortality within Brazil have been more homogeneously distributed than across countries. We use a compensating differentials approach to estimate the value of the observed reductions in mortality. The results suggest that gains in life expectancy had a welfare value equivalent to 39% of the growth in income per capita, being therefore responsible for 28% of the overall improvement in welfare. We then use a dynamic panel to conduct a preliminary assessment of the potential determinants of these gains. We show that improvements in education, access to water, and sanitation seem to be important determinants of the dimension of changes in life expectancy not correlated with income.

Suggested Citation

  • Rodrigo R. Soares, 2007. "Health and the Evolution of Welfare across Brazilian Municipalities," NBER Working Papers 13087, National Bureau of Economic Research, Inc.
  • Handle: RePEc:nbr:nberwo:13087
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    References listed on IDEAS

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    1. Gary S. Becker & Tomas J. Philipson & Rodrigo R. Soares, 2005. "The Quantity and Quality of Life and the Evolution of World Inequality," American Economic Review, American Economic Association, vol. 95(1), pages 277-291, March.
    2. Kristina Burström & Magnus Johannesson & Finn Diderichsen, 2003. "The value of the change in health in Sweden 1980|81 to 1996|97," Health Economics, John Wiley & Sons, Ltd., vol. 12(8), pages 637-654.
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    5. Rosen, Sherwin, 1988. "The Value of Changes in Life Expectancy," Journal of Risk and Uncertainty, Springer, vol. 1(3), pages 285-304, September.
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    12. Thomas Merrick, 1985. "The effect of piped water on early childhood mortality in Urban Brazil, 1970 to 1976," Demography, Springer;Population Association of America (PAA), vol. 22(1), pages 1-24, February.
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    Citations

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    Cited by:

    1. Norbert Schady, 2015. "Does Access to Better Water and Sanitation Infrastructure Improve Child Outcomes? Evidence from Latin America and the Caribbean," IDB Publications (Working Papers) 92337, Inter-American Development Bank.
    2. Gonçalves, Sónia, 2014. "The Effects of Participatory Budgeting on Municipal Expenditures and Infant Mortality in Brazil," World Development, Elsevier, vol. 53(C), pages 94-110.
    3. repec:trp:01jefa:jefa0008 is not listed on IDEAS
    4. Erika Laranjeira & Helena Szrek, 2016. "Going beyond life expectancy in assessments of health systems’ performance: life expectancy adjusted by perceived health status," International Journal of Health Economics and Management, Springer, vol. 16(2), pages 133-161, June.
    5. Romero Rocha & Rodrigo R. Soares, 2010. "Evaluating the impact of community‐based health interventions: evidence from Brazil's Family Health Program," Health Economics, John Wiley & Sons, Ltd., vol. 19(S1), pages 126-158, September.
    6. André Martínez & Carolina Rodríguez-Zamora, 2011. "An Evaluation of the 1997 Fiscal Decentralization Reform in Mexico: The Case of the Health Sector," Working Papers 2011-16, Banco de México.
    7. Sheila M. Olmstead, 2010. "The Economics of Water Quality," Review of Environmental Economics and Policy, Association of Environmental and Resource Economists, vol. 4(1), pages 44-62, Winter.
    8. Norbert Schady, 2015. "Does Access to Better Water and Sanitation Infrastructure Improve Child Outcomes? Evidence from Latin America and the Caribbean," IDB Publications (Working Papers) 7369, Inter-American Development Bank.
    9. Ricci, Francesco & Zachariadis, Marios, 2009. "Longevity and Education Externalities: A Macroeconomic Perspective," TSE Working Papers 09-009, Toulouse School of Economics (TSE).
    10. Kesztenbaum, Lionel & Rosenthal, Jean-Laurent, 2017. "Sewers’ diffusion and the decline of mortality: The case of Paris, 1880–1914," Journal of Urban Economics, Elsevier, vol. 98(C), pages 174-186.
    11. Vrachimis Konstantinos & Zachariadis Marios, 2013. "A contribution to the empirics of welfare growth," The B.E. Journal of Macroeconomics, De Gruyter, vol. 13(1), pages 1-32, April.
    12. Paula C. Pereda & Tatiane A. de Menezes & Denisard Alves, 2014. "Climate Change Impacts on Birth Outcomes in Brazil," IDB Publications (Working Papers) 84775, Inter-American Development Bank.
    13. Daniel Cerqueira & Rodrigo R. Soares, 2016. "The Welfare Cost of Homicides in Brazil: Accounting for Heterogeneity in the Willingness to Pay for Mortality Reductions," Health Economics, John Wiley & Sons, Ltd., vol. 25(3), pages 259-276, March.
    14. Lionel Kesztenbaum & Jean-Laurent Rosenthal, 2014. "Income versus Sanitation; Mortality Decline in Paris, 1880-1914," Working Papers halshs-01018594, HAL.
    15. Amrita Ghatak, 2010. "Health, Labour Supply and Wages: A Critical Review of Literature," Working Papers 244, Institute for Social and Economic Change, Bangalore.
    16. Francesco Ricci & Marios Zachariadis, 2008. "Longevity and Education: A Macroeconomic Perspective," University of Cyprus Working Papers in Economics 1-2008, University of Cyprus Department of Economics.
    17. Lionel Kesztenbaum & Jean-Laurent Rosenthal, 2014. "Income versus Sanitation; Mortality Decline in Paris, 1880-1914," PSE Working Papers halshs-01018594, HAL.
    18. Agha Akram & Sheila Olmstead, 2011. "The Value of Household Water Service Quality in Lahore, Pakistan," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 49(2), pages 173-198, June.
    19. Casabonne, Ursula & Kenny, Charles, 2012. "The Best Things in Life are (Nearly) Free: Technology, Knowledge, and Global Health," World Development, Elsevier, vol. 40(1), pages 21-35.
    20. Abdulkadir Civan & Michael Maloney, 2015. "Launch Decisions of Pharmaceutical Companies," European Journal of Economic and Political Studies, Fatih University, vol. 8(2), pages 35-58.
    21. Ana Barufi & Eduardo Haddad & Antonio Paez, 2011. "Regional dimensions of infant mortality in Brazil," ERSA conference papers ersa10p198, European Regional Science Association.
    22. Mbu Daniel TAMBI & Aloysius Mom NJONG & Menjo Francis BAYE, 2014. "Linking Child Health, Maternal Labour Force Participation and Household Asset Endowments in Cameroon: What the People Say," Economics and Applied Informatics, "Dunarea de Jos" University of Galati, Faculty of Economics and Business Administration, issue 2, pages 5-16.
    23. Francesco Ricci & Marios Zachariadis, 2013. "Education Externalities on Longevity," Economica, London School of Economics and Political Science, vol. 80(319), pages 404-440, July.

    More about this item

    JEL classification:

    • I12 - Health, Education, and Welfare - - Health - - - Health Behavior
    • I31 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - General Welfare, Well-Being
    • I38 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Government Programs; Provision and Effects of Welfare Programs
    • J17 - Labor and Demographic Economics - - Demographic Economics - - - Value of Life; Foregone Income
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration
    • O54 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Latin America; Caribbean

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