Health Human Capital, Long-Run Economic Growth and Poverty Trap
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| Title | Health Human Capital, Long-Run Economic Growth and Poverty Trap
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| Author | Wang Dihai Gong Liutang and Zou Hengfu |
| Organization | School of Economics, Fudan University;Guanghua School of Management, Peking University;CEMA, Central University |
| Email | wangdihai@gmail.com,wangdihai@fudan.edu.cn,ltgong@gsm.pku.edu.cn,zouhengfu@gmail.com |
| Key Words | Health Human Capital; Consumption; Economic Growth; Poverty Trap |
| Abstract | Based on Fogel’s research, this paper studies the relationship between capital accumulation and consumption and discuss the effect of health on economic growth in an extended Ramsey model with assumption that consumption not only bringing agents’ utility but increasing agents’ health, The paper has two important features: 1) treading health as a simple function of consumption, which allows us to study health and growth in an aggregate macroeconomic model; 2) the existence of multiple equilibria of capital stock, health, and consumption, which is highly relevant to the reality – rich countries may end up with higher capital, better health, and higher consumption than poor countries. |
| Serial Number | WP181 |
| Time | 2012-02-14 |
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