Growth and welfare e ffects of health care in knowledge based economies

No 120, Courant Research Centre: Poverty, Equity and Growth - Discussion Papers from Courant Research Centre PEG

Abstract: We study the e ffects of a labor-intensive health care sector within an R&D-driven growth model with overlapping generations. Health care increases longevity and labor participation/productivity. We examine under which conditions expanding health care enhances growth and welfare. Even if the provision of health care diverts labor from productive activities, it may still fuel R&D and economic growth if the additional wealth that comes with expanding longevity translates into a more capital/machine- intensive fi nal goods production and, thereby, raises the return to developing new machines. We establish mild conditions under which an expansion of health care beyond the growth-maximizing level is Pareto-improving.

Keywords: endogenous growth; mortality; (Blanchard) overlapping generations; health care; research and development; sectoral composition (search for similar items in EconPapers)
JEL-codes: I15 I18 O11 O41 O43 (search for similar items in EconPapers)
Date: 2012-08-08
New Economics Papers: this item is included in nep-dge, nep-fdg and nep-ino
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http://www2.vwl.wiso.uni-goettingen.de/courant-papers/CRC-PEG_DP_120.pdf (application/pdf)

Related works:
Journal Article: Growth and welfare effects of health care in knowledge-based economies (2016)
Working Paper: Growth and Welfare Effects of Health Care in Knowledge Based Economies (2013)
Working Paper: Growth and Welfare Effects of Health Care in Knowledge Based Economies (2012)
Working Paper: Growth and welfare effects of health care in knowledge based economies (2012)
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Persistent link: https://EconPapers.repec.org/RePEc:got:gotcrc:120

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