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Childhood preventive care, adult healthcare and economic growth: The role of healthcare financing

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  • Woode, Maame Esi
  • Nourry, Carine
  • Ventelou, Bruno

Abstract

We analyze the impact of healthcare financing on economic growth, focusing on the issue of the joint public–private financing of healthcare (co-payment). We use an overlapping-generations model with endogenous growth based on health human capital accumulation, where families pay for childhood preventive care and the government can either fully finance or co-finance adulthood curative care. From a growth maximizing perspective, distortionary taxes give an advantage to co-financing. Nevertheless, we prove that, if agents are assumed to be heterogeneous in preferences, full financing can become the best option.

Suggested Citation

  • Woode, Maame Esi & Nourry, Carine & Ventelou, Bruno, 2014. "Childhood preventive care, adult healthcare and economic growth: The role of healthcare financing," Economics Letters, Elsevier, vol. 124(1), pages 41-47.
    • Handle: RePEc:eee:ecolet:v:124:y:2014:i:1:p:41-47
    DOI: 10.1016/j.econlet.2014.04.017
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    Cited by:

    1. Pu Liao & Zhihong Dou & Xingxing Guo, 2021. "The Effect of Health Shock and Basic Medical Insurance on Family Educational Investment for Children in China," IJERPH, MDPI, vol. 18(10), pages 1-16, May.
    2. Woode, Maame Esi, 2017. "Parental health shocks and schooling: The impact of mutual health insurance in Rwanda," Social Science & Medicine, Elsevier, vol. 173(C), pages 35-47.

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    More about this item

    Keywords

    Growth; Economic development; Human capital; Health;
    All these keywords.

    JEL classification:

    • O11 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development
    • I18 - Health, Education, and Welfare - - Health - - - Government Policy; Regulation; Public Health

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