Health and Development: A Neoclassical Perspective

TY - JOUR

T1 - Health and Development: A Neoclassical Perspective

AU - Hansen, Casper Worm

PY - 2013

Y1 - 2013

N2 - Previous research establishes that the rise in life expectancy during the second half of the twentieth century led to larger, but not wealthier, populations. In terms of the neoclassical growth theory, these findings indicate that the potential positive effects of health on human capital and productivity (TFP) are limited. The current paper decomposes this corollary. Specifically, it demonstrates that life expectancy promotes human capital skills, which, according to the neoclassical theory, suggests that the TFP elasticity with respect to health is close to zero.

AB - Previous research establishes that the rise in life expectancy during the second half of the twentieth century led to larger, but not wealthier, populations. In terms of the neoclassical growth theory, these findings indicate that the potential positive effects of health on human capital and productivity (TFP) are limited. The current paper decomposes this corollary. Specifically, it demonstrates that life expectancy promotes human capital skills, which, according to the neoclassical theory, suggests that the TFP elasticity with respect to health is close to zero.

M3 - Journal article

SN - 1932-8575

VL - 7

SP - 274

EP - 295

JO - Journal of Human Capital

JF - Journal of Human Capital

IS - 3

ER -