Why does Health Share of Income Increase over Time?

Rodrigo Cerda

No 207, Documentos de Trabajo from Instituto de Economia. Pontificia Universidad Católica de Chile.

Abstract: This paper deals with the view that income elasticity of health care is larger than one, as argued by empirical results on the literature. We build a theoretical model that shows that endogenous demographic transition may play a fundamental role on this result. It is argued that families must choose the number and the life expectancy of their members. Due to limited resources, there is a trade-o. between those two variables though. It is shown that increases on income may produce a demographic transition that allows a larger allocation of resources to health care.

Keywords: Health share of income; life expectancy; demographic transition (search for similar items in EconPapers)
JEL-codes: I10 J11 (search for similar items in EconPapers)
Date: 2002
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://www.economia.uc.cl/docs/doctra/dt-207.pdf (application/pdf)

Related works:
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: https://EconPapers.repec.org/RePEc:ioe:doctra:207

Access Statistics for this paper

More papers in Documentos de Trabajo from Instituto de Economia. Pontificia Universidad Católica de Chile. Contact information at EDIRC.
Bibliographic data for series maintained by Jaime Casassus ().