Growth and welfare effects of health care in knowledge based economies

Arbeitspapier

We study the effects of a labor-intensive health care sector within an R&D-driven growth model with overlapping generations. Health care increases longevity and labor participation/productivity. We examine under which conditions expanding health care enhances growth and welfare. Even if the provision of health care diverts labor from productive activities, it may still fuel R&D and economic growth if the additional wealth that comes with expanding longevity translates into a more capital/machine- intensive final goods production and, thereby, raises the return to developing new machines. We establish mild conditions under which an expansion of health care beyond the growth-maximizing level is Pareto-improving.

Angaben zum Objekt

• Sprache: Englisch

Verweise und Beziehungen

• Erschienen in: Series: ECON WPS ; No. 03/2012

Klassifikation und Themen

• Klassifikation: Wirtschaft ; Health and Economic Development ; Health: Government Policy; Regulation; Public Health ; Macroeconomic Analyses of Economic Development ; One, Two, and Multisector Growth Models ; Institutions and Growth
• Thema: endogenous growth ; mortality ; (Blanchard) overlapping generations ; health care ; research and development ; sectoral composition

Beteiligte, Orts- und Zeitangaben

• Ereignis: Geistige Schöpfung
• (wer): Kuhn, Michael ; Prettner, Klaus
• Ereignis: Veröffentlichung
• (wer): Vienna University of Technology, Institute of Mathematical Methods in Economics, Research Group Economics
• (wo): Vienna
• (wann): 2012

Weitere Informationen

• Handle: http://hdl.handle.net/10419/67609
• Letzte Aktualisierung: 12.07.2024, 13:22 MESZ