Health and Development
Bucci AlbertoCarbonari LorenzoRanalli MoniaTrovato Giovanni
CEIS Research Paper
In this paper we examine whether the Solow growth model is consistent with across-countries variations in standard of living once investments in education and health are explicitly and simultaneously taken into account. Using a sample of low- and middle-income economies, we provide evidence that per capita GDP is positively affected by population's health, here proxied by the life expectancy at birth. Public expenditure on health affects indirectly the level of per capita income through its positive effectect on life expectancy. Using a Finite Mixture approach, we also show that richer economies are those where the impact of unobserved factors on the level of per capita income is stronger.
Keywords: Health, Education and Human Capital, Economic Development and Growth, Finite Mixture Models, Classification
JEL codes: I15,I25,J24,O41,C14
Date: Monday, September 30, 2019
Revision Date: Monday, September 30, 2019