Why Does Health Capital Increase in the Developed Countries and Decrease in Post-Soviet Russia? (An Attempt at Post Keynesian Explanation)

The article formulates the post Keynesian approach to dynamics of health capital. The author shows that this dynamics scarcely depends on rational calculation of expected benefits and costs because these are unknown. Investment in health capital is determined mainly by the degree of animal spirits, features of conventional judgment, habits, social norms and rules. In the developed countries these factors contribute to accumulation of health capital and, consequently, increasing life expectancy. In post-Soviet Russia health capital decreases - and life expectancy is low - first of all, due to investor myopia (unwillingness to take into account distant future) caused by higher uncertainty.