Health and Infrastructure in Models of Endogenous Growth

Pierre-Richard Agénor ()

Centre for Growth and Business Cycle Research Discussion Paper Series from Economics, The Univeristy of Manchester

Abstract: This paper studies the optimal allocation of government spending between infrastructure and health (which affects labor productivity as well as household utility) in an endogenous growth framework. A key feature of the model is that infrastructure affects not only the production of goods but also the supply of health services. The first part considers the case where health enters as a flow in production and utility, whereas the second focuses on a "stock" approach. Growth- and utility-maximizing rules for output taxation and the allocation of public spending are derived. It is shown, in particular, that the welfare-maximizing share of spending on health exceeds the growth-maximizing share.

New Economics Papers: this item is included in nep-dev, nep-hea and nep-upt
Date: 2005
View list of references View citations in EconPapers

Downloads: (external link)
http://www.socialsciences.manchester.ac.uk/cgbcr/dpcgbcr/dpcgbcr62.pdf (application/pdf)

Related works:
Working Paper: Health and Infrastructure in Models of Endogenous Growth (2005)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: http://EconPapers.repec.org/RePEc:man:cgbcrp:62

Access Statistics for this paper

More papers in Centre for Growth and Business Cycle Research Discussion Paper Series from Economics, The Univeristy of Manchester
Contact information at EDIRC.
Series data maintained by Marianne Sensier ().