Title

Public and private expenditures on health in a growth model

Campus Units

Economics

Document Type

Article

Publication Version

Submitted Manuscript

Publication Date

8-2007

Journal or Book Title

Journal of Economic Dynamics and Control

Volume

31

Issue

8

First Page or Article ID Number

2519

Last Page

2535

DOI

10.1016/j.jedc.2006.07.007

Abstract

This paper introduces endogenous longevity into an otherwise standard overlapping generations model with capital. In the model, a young agent may increase the length of her old age by incurring investments in health. Such private health investments are assumed to be more ‘productive’ if accompanied by complementary tax-financed public health programs. The presence of the public input in private longevity is shown to expose the economy to aggregate endogenous fluctuations and even chaos, and such volatility is impossible in its absence. The model is capable of generating dramatic reversals in life expectancy as has been observed in many countries.

JEL Classification

E10, J10, O10, O40

Comments

This article is published as Public and Private Expenditures on Health in a Growth Model (with X. Qiao), Journal of Economic Dynamics and Control, 31 (8), 2519-2535, 2007. DOI: 10.1016/j.jedc.2006.07.007. Posted with permission.

Copyright Owner

Elsevier B.V.

Language

en

File Format

application/pdf

Published Version Working Paper

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