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The missing link: Are individuals with more social capital in better health? Evidence from India

Baris Alpaslan and Julide Yildirim ()

CAMA Working Papers from Centre for Applied Macroeconomic Analysis, Crawford School of Public Policy, The Australian National University

Abstract: This paper extends a two-period Overlapping Generations (OLG) model of endogenous growth in which associations between human capital, social capital, and health outcomes are critically examined for a low income country, India. If individuals with higher level of human capital can build strong social ties and have more robust social networks, they are then less likely to have health problems and are therefore physically healthier. In an attempt to test the so-called relationship between the variables in question, a unique dataset, where micro-level data from the World Values Survey (WVS) and regional-level macro data from the Central Statistics Office of India were both utilized, was accessed. A three-equation model has been then estimated using the conditional mixed-process (CMP) method in order to explicitly address endogeneity issues. Our estimation results provide important insights into the theoretical thesis in several ways. Firstly, human capital has a favorable impact upon social capital, which in turn enhances self-reported health. Secondly, we provide a comparison of three main experiments: an increase in the share of public spending by region on education, social capital-enhancing activities, and health. The results confirm the positive effect of an increase in each form of government spending on outcome variables. Thirdly, the correlation coefficient between disturbances of these three equations turns out to be statistically significant, suggesting that there are unobserved factors, which can affect self-reported health, social capital and human capital variables.

JEL-codes: C30 H51 H52 H59 I15 I25 O41 (search for similar items in EconPapers)
Pages: 38 pages
Date: 2016-05
New Economics Papers: this item is included in nep-gro, nep-hea, nep-pub and nep-ure
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Journal Article: The Missing Link: Are Individuals with More Social Capital in Better Health? Evidence from India (2020) Downloads
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