Health and economic growth: Reconciling the micro and macro evidence
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Economists use micro-based and macro-based approaches to assess the macroeconomic return to population health. The macro-based approach tends to yield estimates that are either negative and close to zero or positive and an order of magnitude larger than the range of estimates derived from the micro-based approach. This presents a micro-macro puzzle regarding the macroeconomic return to health. We reconcile the two approaches by controlling for the indirect effects of health on income per capita, which macro-based approaches usually include but micro-based approaches deliberately omit when isolating the direct income effects of health. Our results show that the macroeconomic return to health lies in the range of plausible microeconomic estimates, demonstrating that both approaches are in fact consistent with one another.
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Investments in health, and women's health in particular, have been shown to further enhance growth.
“Similarly, investments in health (Weil 2007, Bloom et al. 2024), and women's health in particular (Bloom et al. 2020), have been shown to further enhance growth.”
From Fertility in High-Income Countries: Trends, Patterns, Determinants, and Consequences (2024) · cites this paper as Bloom et al. 2024
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- Authors
- Bloom, D. E., Canning, D., Kotschy, R., Prettner, K., & Schünemann, J.
- Affiliations
- Harvard University (US)
- University of Göttingen (DE)
- Corresponding author
- Kotschy, Rainer
- Venue
- World Development
- Publisher
- Elsevier BV
- Published
- 2024-06
- Volume
- 178
- Pages
- 106575
- ISSN
- 0305-750X (ISSN-L)
- PMC
- PMC10921999
- OpenAlex
- W4289329737
- Cited by
- 75
- References
- 77
- Citations by year
- 2026: 19 · 2025: 11 · 2024: 8 · 2023: 4 · 2022: 4 · 2021: 9 · 2020: 2 · 2019: 3 · 2018: 2 · 2017: 1 · 2015: 2 · 2014: 3 · 2013: 2 · 2012: 1
- FWCI
- 22.16
- Type
- journal article
- Language
- en
- Open access
- bronze
- doi.org
- Licence
- www.elsevier.com/tdm/userlicense/1.0/ (tdm)
- www.elsevier.com/legal/tdmrep-license (tdm)
- www.elsevier.com/open-access/userlicense/1.0/ (am, 258 d)
- doi.org/10.15223/policy-017 (stm-asf)
- doi.org/10.15223/policy-037 (stm-asf)
- doi.org/10.15223/policy-012 (stm-asf)
- doi.org/10.15223/policy-029 (stm-asf)
- doi.org/10.15223/policy-004 (stm-asf)
- Locations
- World Development (acceptedVersion)
- PubMed (publishedVersion)
- PubMed Central (acceptedVersion)
- GoeScholar The Publication Server of the Georg-August-Universität Göttingen (Georg-August-Universität Göttingen) (submittedVersion, cc-by)
- WU Research (submittedVersion)
- Funders
- Deutsche Forschungsgemeinschaft (395413683, 471897412)
- National Institutes of Health
- National Institute on Aging (P30AG024409)
- Topics
- Health Sciences › Health Professions › General Health Professions › Global Health Care Issues
- Social Sciences › Economics, Econometrics and Finance › Economics and Econometrics › Economic Growth and Productivity
- Social Sciences › Economics, Econometrics and Finance › Economics and Econometrics › Historical Economic and Social Studies
- Keywords
- health and economic growth, population health, per capita income
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