Endogenous Health Investment, Saving and Growth - A theoretical study with an application to Chinese data

Yan Chen ()
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Yan Chen: Department of Economics, Postal: HERO / Institute of Health Management and Health Economics, P.O. Box 1089 Blindern, NO-0317 Oslo, Norway

No 2007:8, HERO Online Working Paper Series from University of Oslo, Health Economics Research Programme

Abstract: The idea behind this thesis stems from the existing abundance of empirical studies suggesting the strong correlation between longevity and economic growth. In a simple two period overlappinggeneration framework, we establish a direct link between health investment and economic growth through endogenous survival rate. We find that health expenditure complements saving in equilibrium, thereby contributes to economic growth, which in turn leads to a further increase in health investment. The simulation with calibrated parameters also manifests the consistence between our results and the worldwide data as well as the fact of China.

Keywords: health investment; economic growth; China (search for similar items in EconPapers)
JEL-codes: I31 (search for similar items in EconPapers)
Pages: 51 pages
Date: 2009-06-03
New Economics Papers: this item is included in nep-dev, nep-fdg, nep-hea and nep-tra
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Citations: View citations in EconPapers (4)

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