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Growth and welfare effects of health care in knowledge based economies: conference paper

Feldname Details
Art des Inhalts Konferenzschrift
Name Kuhn, Michael
Prettner, Klaus
T I T E L Growth and welfare effects of health care in knowledge based economies
Zusatz zum Titel conference paper
Verfasserangabe Kuhn, Michael ; Prettner, Klaus
Erscheinungsort [Kiel ; Hamburg]
Verlag ZBW
Erscheinungsjahr 2013
Umfang Online-Ressource (46 S.) : graph. Darst.
Serie Jahrestagung des Vereins für Socialpolitik 2013
Band F07-V2
Systemvoraussetzungen $bSystemvoraussetzungen: Acrobat Reader
Kurzbeschreibung We study the effects of a labor-intensive health care sector within an R&D-driven growth model with overlapping generations. Health care increases longevity and labor participation/productivity. We examine under which conditions expanding health care enhances growth and welfare. Even if the provision of health care diverts labor from productive activities, it may still fuel R&D and economic growth if the additional wealth that comes with expanding longevity translates into a more capital/machine-intensive final goods production and, thereby, raises the return to developing new machines. We establish mild conditions under which an expansion of health care beyond the growth-maximizing level is Pareto-improving.
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