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Childhood preventive care, adult healthcare and economic growth: The role of healthcare financing

Maame Woode, Carine Nourry and Bruno Ventelou

Economics Letters, 2014, vol. 124, issue 1, 41-47

Abstract: We analyze the impact of healthcare financing on economic growth, focusing on the issue of the joint public–private financing of healthcare (co-payment). We use an overlapping-generations model with endogenous growth based on health human capital accumulation, where families pay for childhood preventive care and the government can either fully finance or co-finance adulthood curative care. From a growth maximizing perspective, distortionary taxes give an advantage to co-financing. Nevertheless, we prove that, if agents are assumed to be heterogeneous in preferences, full financing can become the best option.

Keywords: Growth; Economic development; Human capital; Health (search for similar items in EconPapers)
JEL-codes: I18 O11 (search for similar items in EconPapers)
Date: 2014
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

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Working Paper: Childhood preventive care, adult healthcare and economic growth: The role of healthcare financing (2014)
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Persistent link: https://EconPapers.repec.org/RePEc:eee:ecolet:v:124:y:2014:i:1:p:41-47

DOI: 10.1016/j.econlet.2014.04.017

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