The Effects of Health Investments on Human Capital and R&D-Driven Economic Growth

Annarita Baldanzi (), Alberto Bucci () and Klaus Prettner

Departmental Working Papers from Department of Economics, Management and Quantitative Methods at Università degli Studi di Milano

Abstract: We propose an R&D-based growth model in which the stock of human capital of the next generation is determined by parental education and health investments. We show that there is a complementarity between education and health: if parents want to have better educated children, they also need to increase health investments and vice versa. We also show that population growth has a negative effect on long-run economic growth, which is consistent with the empirical evidence for modern economies in the twentieth century. Altogether, our framework provides a complementary mechanism to explain the finding that health investments reduce fertility and raise economic growth.

Keywords: Health; Education; Fertility; Economic Growth (search for similar items in EconPapers)
JEL-codes: I15 I25 J10 O30 O41 (search for similar items in EconPapers)
Date: 2016-12-24
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Persistent link: https://EconPapers.repec.org/RePEc:mil:wpdepa:2016-17

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