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

Maame Woode, Carine Nourry and Bruno Ventelou

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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: Economic development; Growth; health; human capital (search for similar items in EconPapers)
Date: 2014
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Citations: View citations in EconPapers (2)

Published in Economics Letters, 2014, 124 (1), pp.41-47. ⟨10.1016/j.econlet.2014.04.017⟩

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Journal Article: 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:hal:journl:hal-01463103

DOI: 10.1016/j.econlet.2014.04.017

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