Wealthier is healthier
With cross-country, time series data on health (infant and child mortality, and life expectancy) and per capita income, the authors estimate the effect of income on health. They use instrumental variables estimation to identify the effect of income on health that is structural and causal, isolated from reverse causation (healthier workers are more productive and hence wealthier) or incidental association (some other factor may cause both better health and greater wealth). The long-run income elasticity of infant and child mortality in developing countries lies between 0.2 and 0.4. Using those estimates, they calculate that in 1990 alone, more than half a million child deaths in the developing world could be attributed to poor economic performance in the 1980s.
|Date of creation:||30 Jun 1993|
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Policy Research Working Paper Series
609, The World Bank.
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- Ravallion, Martin, 1990. "Income Effects on Undernutrition," Economic Development and Cultural Change, University of Chicago Press, vol. 38(3), pages 489-515, April.
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"Farm-nonfarm linkages in rural sub-Saharan Africa,"
Policy Research Working Paper Series
6, The World Bank.
- William Easterly & Michael Kremer & Lant Pritchett & Lawrence H. Summers, 1993.
"Good Policy or Good Luck? Country Growth Performance and Temporary Shocks,"
NBER Working Papers
4474, National Bureau of Economic Research, Inc.
- Easterly, William & Kremer, Michael & Pritchett, Lant & Summers, Lawrence H., 1993. "Good policy or good luck?: Country growth performance and temporary shocks," Journal of Monetary Economics, Elsevier, vol. 32(3), pages 459-483, December.
- Thomas, Duncan & Strauss, John & Henriques, Maria-Helena, 1990. "Child survival, height for age and household characteristics in Brazil," Journal of Development Economics, Elsevier, vol. 33(2), pages 197-234, October.
- James G. MacKinnon & Halbert White, 1983.
"Some Heteroskedasticity Consistent Covariance Matrix Estimators with Improved Finite Sample Properties,"
537, Queen's University, Department of Economics.
- MacKinnon, James G. & White, Halbert, 1985. "Some heteroskedasticity-consistent covariance matrix estimators with improved finite sample properties," Journal of Econometrics, Elsevier, vol. 29(3), pages 305-325, September.
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