HEALTH IMPROVEMENTS AND THE TRANSITION OUT OF MALTHUSIAN STAGNATION

Luis Currais (), Berta Rivera and Paolo Rungo

Bulletin of Economic Research, 2009, vol. 61, issue 4, 335-352

Abstract: The central component of most economic models that analyse the transition from the Malthusian regime to self‐sustaining developed economies is education. Improved health is normally envisaged as simply a by‐product of economic growth. Whereas growth does, indeed, tend to improve health status, the reverse is also true, namely that health improvements are a dynamic force capable of driving economic expansion. This paper underlines the importance of health improvements in escaping from Malthusian stagnation. Further, and in contrast to existing literature, which emphasizes the effects of changes in mortality rates, this paper focuses on the relationship between health status and the efficiency of human capital technology. Through this channel, health improvements stimulate investments in child quality in terms of both nourishing and schooling and drive the economy towards the Modern Growth regime.

Date: 2009
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