In this paper we will show that for empirically plausible parameter values, a two-sector growth model contained health capital can yield a slow speed adjustment process. Calibrating the model, we demonstrate that in the case of a capital deepening externality in the health sector has relatively...

This paper develops a two-sector endogenous growth model with health capital and examines the impact tax financed health expenditure has on long-run growth. In this model, health capital is accumulated through government spending as a flow channel and a capital deepening externality as a stock...

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