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Health and Economic Development: Evidence from the Introduction of Public Health Care

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  • Strittmatter, Anthony

    (University of St. Gallen)

  • Sunde, Uwe

    (University of Munich)

Abstract

This paper investigates the causal effect of changes 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 the dynamics of infant mortality and crude death rates. The findings suggest that a reduction in infant mortality or crude death rates exhibited a positive effect on growth in income per capita and increased population growth.

Suggested Citation

  • Strittmatter, Anthony & Sunde, Uwe, 2011. "Health and Economic Development: Evidence from the Introduction of Public Health Care," IZA Discussion Papers 5901, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp5901
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    More about this item

    Keywords

    public health care; economic development; growth; mortality;
    All these keywords.

    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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