Health and endogenous growth.
The focus of endogenous growth theory on human capital formation and the physical embodiment of knowledge in people, suggests the integration of the growth supporting character of health production and the growth generating services of human capital accumulation in an endogenous growth framework. We show that a slow down in growth may be explained by a preference for health that is positively influenced by a growing income per head, or by an ageing population. Growth may virtually disappear for countries with high rates of decay of health, low productivity of the health-sector, or high rates of discount.
MERIT, Maastricht Economic Research Institute on Innovation and Technology, P.O. Box 616, 6200 MD Maastricht, The Netherlands. adriaan.vanzon@merit.unimaas.nl
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van Zon
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Muysken
D004526:Efficiency; D006301:Health Services Needs and Demand; D006304:Health Status; D006801:Humans; D008136:Longevity; D018803:Models, Economic; D009426:Netherlands; D011158:Population Growth; D012959:Socioeconomic Factors