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The effect of health investment on growth: A causality analysis

Berta Rivera and Luis Currais ()

International Advances in Economic Research, 2003, vol. 9, issue 4, 312-323

Abstract: The aim of this paper is to analyze the effect of health investment on productivity as an important variable associated with human capital accumulation. The authors also study the possible existence of endogeneity by using instrumental variables estimation. The results that are obtained may be interpreted as evidence of the positive impact of health expenditure on income growth. Furthermore, the authors looked at the bounded gains of health status and divided the sample according to the median of total health expenditure and found that the countries with lower levels of health spending obtain larger benefits when the other determinants of growth are held constant. Copyright International Atlantic Economic Society 2003

Date: 2003
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DOI: 10.1007/BF02296180

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