Bosi, Stefano and Laurent, Thierry (2011): Health, growth and welfare: a theoritical appraisal of the long run impact of medical R&D. Forthcoming in:
Download (258kB) | Preview
This paper aims at providing a simple economic framework to address the question of the optimal share of investments in medical R&D in total public spending. In order to capture the long-run impact of tax-financed medical R&D on the growth rate, we develop an endogenous growth model in the spirit of Barro . The model focuses on the optimal sharing of public resources between consumption and (non-health) investment, medical R&D and other health expenditures. It emphasizes the key role played by the public health-related R&D in enhancing economic growth and welfare in the long run.
|Item Type:||MPRA Paper|
|Original Title:||Health, growth and welfare: a theoritical appraisal of the long run impact of medical R&D|
|Keywords:||Public health ; Medical R&D; Public spending; Endogenous growth|
|Subjects:||H - Public Economics > H5 - National Government Expenditures and Related Policies > H51 - Government Expenditures and Health
I - Health, Education, and Welfare > I1 - Health > I18 - Government Policy ; Regulation ; Public Health
H - Public Economics > H2 - Taxation, Subsidies, and Revenue > H23 - Externalities ; Redistributive Effects ; Environmental Taxes and Subsidies
O - Economic Development, Innovation, Technological Change, and Growth > O3 - Innovation ; Research and Development ; Technological Change ; Intellectual Property Rights > O31 - Innovation and Invention: Processes and Incentives
|Depositing User:||THIERRY LAURENT|
|Date Deposited:||29 Sep 2011 12:10|
|Last Modified:||13 Jul 2016 22:46|
Aghion P. and P. Howitt , Endogenous Growth Theory, MIT Press.
Barro R.J. , Government Spending in a Simple Model of Endogenous Growth, Journal of Political Economy 98, 103-126.
Barro R.J. and X. Sala-i-Martín , Economic Growth, MIT Press.
Blanchard O.J. and D. Quah , The Dynamic Effects of Aggregate Demand and Supply Disturbances, American Economic Review 79, 655-673.
Corsetti G. and N. Roubini , Optimal Government Spending and Taxation in Endogenous Growth Models, National Bureau of Economic Research, Working Papers 5851.
Grossman G. and E. Helpman , Innovation and Growth in the Global Economy, Cambridge, MIT Press.
Hosoya K. , Tax financed government health expenditure and growth with capital deepening externality, Economics Bulletin 5, 1-10.
Jamison D.T., L.J. Lau and J. Wang , Health's Contribution to Economic Growth in an Environment of Partially Endogenous Technical Progress, in Health and Economic Growth: Findings and Policy Implications, López-Casasnovas G., Berta Rivera and Luis Currais eds., MIT Press.
Klenow P.J., A. Rodriguez-Clare , Externalities and Growth, in Aghion P. and S. Durlauf eds., Handbook of Economic Growth, Elsevier, Amsterdam.
Mankiw N.G., D. Romer and D.N. Weil , A Contribution to the Empirics of Economic Growth, Quarterly Journal of Economics 107, 407-437.
Romer, P. , Endogenous Technological Change, Journal of Political Economy 98, 71-102.
Weil D.N. , Accounting for the Effect of Health on Economic Growth, Department of Economics, Brown University, Working Papers 2005-07.
Zon A.H. and J. van Muysken , Health and Endogenous Growth, Journal of Health Economics 20, 169-85.