Growth and welfare effects of health care in knowledge-based economies

Michael Kuhn, Klaus Prettner

Publication: Scientific journalJournal articlepeer-review

Abstract

We study the effects of labor intensive health care within a research and development (R&D) driven growth model with overlapping generations. Health care increases longevity, labor participation, and productivity, while it also diverts labor away from production and R&D. We examine under which conditions expanding health care enhances growth and welfare and establish mild conditions under which the provision of health care beyond the growth-maximizing level is Pareto superior.
Original languageEnglish
Pages (from-to)100 - 119
JournalJournal of Health Economics
Volume46
DOIs
Publication statusPublished - 2016

Cite this