title: Growth and welfare effects of health care in knowledge-based economies.
abstract: We study the effects of labor intensive health care within a research and development (R&D) driven growth model with overlapping generations. Health care increases longevity, labor participation, and productivity, while it also diverts labor away from production and R&D. We examine under which conditions expanding health care enhances growth and welfare and establish mild conditions under which the provision of health care beyond the growth-maximizing level is Pareto superior.
authors.affiliation: Wittgenstein Centre (IIASA, VID/ÖAW, WU), Vienna Institute of Demography, Welthandelsplatz 2, Level 2, A-1020 Vienna, Austria. Electronic address: michael.kuhn@oeaw.ac.at.
authors.forename: Michael
authors.initials: M
authors.lastname: Kuhn
authors.affiliation: University of Hohenheim, Institute of Economics, Schloss, Osthof-West, 70593 Stuttgart, Germany. Electronic address: klaus.prettner@uni-hohenheim.de.
authors.forename: Klaus
authors.initials: K
authors.lastname: Prettner
mesh_terms: D003695:Delivery of Health Care; D019049:Developed Countries; D057217:Economic Development; D004651:Employment; D006801:Humans; D008136:Longevity; D015233:Models, Statistical; D009017:Morbidity; D009026:Mortality
keywords: Endogenous growth; Health care; Morbidity; Mortality; Research and development