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Disease and Development Revisited

  • David E. Bloom
  • David Canning
  • Günther Fink

In a recent paper, Acemoglu and Johnson (2007) argue that the large increases in population health witnessed in the 20th century may have lowered income levels. We argue that this result depends crucially on their assumption that initial health and income do not affect subsequent economic growth. Using their data we reject this assumption in favor of a model of conditional convergence, with income adjusting to its steady state over time. We show that, allowing for conditional convergence, exogenous improvements in health due to technical advances associated with the epidemiological transition appear to have increased income levels.

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Paper provided by National Bureau of Economic Research, Inc in its series NBER Working Papers with number 15137.

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Date of creation: Jul 2009
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Publication status: published as David E. Bloom & David Canning & G�nther Fink, 2014. "Disease and Development Revisited," Journal of Political Economy, University of Chicago Press, vol. 122(6), pages 1355 - 1366.
Handle: RePEc:nbr:nberwo:15137
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