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Health, Lifestyle and Growth

Gianluigi Coppola ()

No 115, CELPE Discussion Papers from CELPE - CEnter for Labor and Political Economics, University of Salerno, Italy

Abstract: In this paper I will try to explain why lifestyle may have a positive impact on economic growth. First of all, I consider health affecting consumer’s utility and then define a Health Production Function where health is the output and consumer good the input. In this approach a parameter named Lifestyle Return to Scale (LRS) is defined. The first result is that an increase of consumer’s personal income may have a positive or a negative effect on health. In other words health may be a normal or an inferior good. It depends on Lifestyle Return to Scale- According to this result, I compute a health multiplier and then modify the Solow Growth Model in which health is labour-augmenting. The result is a model in which the Lifestyle Return to Scale positively affects the income per capita and the income per capita growth.

Keywords: health; lifestyles; growth (search for similar items in EconPapers)
JEL-codes: I10 O40 (search for similar items in EconPapers)
Pages: 33 pages
Date: 2010
New Economics Papers: this item is included in nep-hea
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Chapter: Health, Lifestyle and Growth (2012) Downloads
Chapter: Health, Lifestyle and Growth (2012)
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