An exploration of health, human capital and growth

This thesis investigates the importance of health as a primary policy target. In particular, it focuses on how health can improve investment and in turn economic growth; this probes the question of what determines improvements in health. The first major chapter (chapter 2) introduces information about the benefit of using life expectancy at age 10 rather than at birth for investment decisions. This emphasizes how health, at an age later than birth, is important for both educational and physical capital investment due to the elimination of infant and early childhood fatalities. The second major chapter (chapter 3) looks into the public and private financing of health expenditure. The chapter examines whether the financing of health care has an influence on health outcomes and offers some policy advice on the restructuring of healthcare systems. The third contribution (Chapter 4) questions the recent literature that claims empirical evidence shows health improves during recessions. This is a counter intuitive discovery, and a plausible explanation is offered here. It is important as it may highlight certain areas where government can target areas of health depending on the state of the economy. Thereby, helping to reduce the impact fluctuations in growth may have on health, and improving overall health.