Journal Article

Health and Economic Development from Cross-Country Perspectives

Abstract: In this article, we provide a comprehensive overview of the role that health plays in economic develop­ment. We study cross-country differences in income and health and examine the underused value-of-­life and life-year gain measures. In particular, we compare two value-of-life measures, one based on life expectancy and lifetime utility, and the other based on adult mortality and life insurance data. We find that the perception and receptiveness of life insurance are likely better in countries at more advanced stages of economic development. The value-of-life measure based on life insurance data is thus biased upward and downward for developed and developing countries, respectively. We then summarize the strand of theoretical literature and provide several modeling ingredients potentially useful for establishing an integrated analytic structure for understanding the role that health plays in the process of economic development.

JEL Classification: O11; I15; O15;

Access Documents

File(s): File format is application/pdf
Description: Issue Full Text


Bibliographic Information

Provider: Federal Reserve Bank of St. Louis

Part of Series: Review

Publication Date: 2020

Volume: 102

Issue: 1

Pages: 79-98