Health and Infrastructure in Models of Endogenous Growth
This paper studies the optimal allocation of government spending between infrastructure and health (which affects labor productivity as well as household utility) in an endogenous growth framework. A key feature of the model is that infrastructure affects not only the production of goods but also the supply of health services. The first part considers the case where health enters as a flow in production and utility, whereas the second focuses on a "stock" approach. Growth- and utility-maximizing rules for output taxation and the allocation of public spending are derived. It is shown, in particular, that the welfare-maximizing share of spending on health exceeds the growth-maximizing share.
Year of publication: |
2005
|
---|---|
Authors: | Agénor, P R |
Institutions: | School of Economics, University of Manchester |
Saved in:
freely available
Saved in favorites
Similar items by person
-
The Analytics of Segmented Labor Markets
Agénor, P R, (2005)
-
The Macroeconomics of Poverty Reduction
Agénor, P R, (2004)
-
Corruption Clubs: Endogenous Thresholds in Corruption and Development
Agénor, P R, (2006)
- More ...