Economic growth and its effect on public health

Abstract

Purpose

The purpose of this paper is to construct a theoretical framework for analyzing the connection between economic growth, demand for medical care, and economic health.

Design/methodology/approach

The economy is composed of two sectors, one of medical care goods and the other of consumption goods. Equilibrium is defined when capital per‐capita in period t is equal to that of period t+1.

Findings

An equilibrium path is found for the demand for consumption and for medical care goods, per‐capita level of health, capital, savings, trade balance, and net foreign assets.

Research limitations/implications

The importance of the paper is in its ability to analyze the change in public health along the growth path of the economy.

Practical implications

An example and a simulation are presented in order to confirm the theoretical results and demonstrate that the model can be used for empirical analysis.

Originality/value

The paper constructs a connection between economic growth and health sector economic developments.

Citation

Ben‐David, N. (2009), "Economic growth and its effect on public health", International Journal of Social Economics, Vol. 36 No. 3, pp. 252-273. https://doi.org/10.1108/03068290910932747