Health and Development

40 Pages Posted: 30 Sep 2019

See all articles by Alberto Bucci

Alberto Bucci

University of Milan - Department of Business Policy and Economics

Lorenzo Carbonari

Università di Roma "Tor Vergata"

Monia Ranalli

University of Rome III

Giovanni Trovato

University of Rome Tor Vergata - Faculty of Economics

Date Written: September 16, 2019

Abstract

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 effect 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, Classi cation

JEL Classification: I15, I25, J24, O41, C14

Suggested Citation

Bucci, Alberto and Carbonari, Lorenzo and Ranalli, Monia and Trovato, Giovanni, Health and Development (September 16, 2019). CEIS Working Paper No. 470. Available at SSRN: https://ssrn.com/abstract=3460577 or http://dx.doi.org/10.2139/ssrn.3460577

Alberto Bucci

University of Milan - Department of Business Policy and Economics ( email )

Via Mercalli, 23
20122-Milano
Italy
+39(0)2 50321.463 (Phone)
+39(0)2 50321.505 (Fax)

Lorenzo Carbonari (Contact Author)

Università di Roma "Tor Vergata" ( email )

Via Columbia 2
Roma, Lazio 00133
Italy

Monia Ranalli

University of Rome III ( email )

Via Ostiense, 159
Rome, RM 00145
Italy

Giovanni Trovato

University of Rome Tor Vergata - Faculty of Economics ( email )

Via Columbia n.2
Rome, rome 00100
Italy

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