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HEALTH-LED GROWTH SINCE 1800

Published online by Cambridge University Press:  17 July 2017

Jakob B. Madsen
Jakob B. Madsen*
Affiliation:
Monash University
*
Address correspondence to: Jakob B. Madsen, Department of Economics, Monash University, 900 Dandenong Road, Caulfield East, VIC 3145, Australia; e-mail: Jakob.Madsen@monash.edu.
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Abstract

This paper argues that the marked reduction in the burden of parasitic and infectious diseases (PID) together with improved nutrition over the past two centuries in today's advanced countries has resulted in markedly improved physiological capital and cognitive skills and, consequently, in productivity advances. Using a unique annual dataset covering the period 1800–2011 for 21 OECD (Organisation for Economic Co-operation and Development) countries, it is found that health improvements can account for approximately a third of the productivity advances in the OECD countries since 1865, and that these improvements have been influential for enhancement in education, savings, innovations, life expectancy, and democracy.

Keywords

Great Demographic TransitionPhysiological CapitalIQProductivity Growth
Type
Articles
Information
Macroeconomic Dynamics , Volume 22 , Issue 4 , June 2018 , pp. 961 - 1000
Copyright
Copyright © Cambridge University Press 2017 

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Footnotes

Helpful comments and suggestions from Chris Barrett, Francois Bourguignon, James Flynn, Michel Burda, Christos Ioannidis, participants in seminars at the University of Essex, Humboldt University, Deakin University, Copenhagen Business School, NBER East Asian Seminar, Taipei, University of Vienna, University of Wollongong, Monash University, National Chengchi University, and University of Bath, and, particularly, two referees and an associate editor are gratefully acknowledged. Financial support from the Australian Research Council (ARC Discovery Grant nos. DP1093134 and DP110101871) is also acknowledged. Rabiul Islam, Paula Madsen, and Stoja Andric provided excellent research assistance.

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