 Public health infrastructure and growth: Ways to improve the inferior equilibrium under multiple equilibriaKei Hosoya Research in Economics, 2014, vol. 68, issue 3, 194-207 Abstract: This paper develops an endogenous growth model in which public health infrastructure, specified as a stock, plays an important role in economic growth. A notable feature of the model is that it employs a non-separable utility function for consumption, leisure, and the level of public health. In addition, increasing the level of health infrastructure contributes to the production of goods through labor augmentation. With these settings, our model is found to have a unique equilibrium or multiple equilibria, depending on the magnitude of the intertemporal elasticity of substitution. For the case of multiple equilibria, we numerically study the ways to avoid the low-growth state in developing countries. From this, we identify two feasible policy implications. The results indicate that public health infrastructure has a vital role in the development policies of low-income countries. Lastly, we show that there are two possibilities in regard to the local dynamics of the model. Keywords: Health infrastructure; Leisure; Multiple equilibria; Low-growth state (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:eee:reecon:v:68:y:2014:i:3:p:194-207 DOI: 10.1016/j.rie.2014.04.002 Access Statistics for this article Research in Economics is currently edited by Federico Etro More articles in Research in Economics from Elsevier |
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