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The Untold Standards of Living Story: The GDP value of Twentieth Century Health Improvements in Developed Economies

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  • Hickson, Kerry

    (University of Warwick)

Abstract

Economists are aware that conventional measures of national income do not capture everything that is important to individuals. In particular, the value of huge improvments in health over the twentieth century has gone uncalculated. Usher (1980) and Nordhaus (2002) have emphasised the virtues of including mortality improvments in some form of extended national income measure. This paper therefore sets out a methodology that can be used to calculate the value of mortality and morbidity improvements. The results indicate that health improvements in developed economies have been worth at least $1 trillion. As such not accounting for historical health gains leads to a significant underestimate of improvements in standards of living and economic development.

Suggested Citation

  • Hickson, Kerry, 2012. "The Untold Standards of Living Story: The GDP value of Twentieth Century Health Improvements in Developed Economies," CAGE Online Working Paper Series 105, Competitive Advantage in the Global Economy (CAGE).
    • Handle: RePEc:cge:wacage:105
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    References listed on IDEAS

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