THE IMPACT OF INCREASING RETIREMENT AGE ON HEALTH SERVICES AND ECONOMIC GROWTH IN BRAZIL
DOI:
https://doi.org/10.25070/rea.v16i1.546Abstract
This paper uses the Zon and Muysken (2001) model to investigate the effect of increasing the retirement age on health care production, human capital accumulation, and economic growth. All three sectors are interrelated, since the overall level of health affects both workers and the accumulation of human capital, while a higher level of human capital is related to better quality of health. And, finally, health and human capital affect the output of the economy. From the economic growth point of view the results seem to be positive. Increasing labor availability raises productivity in the health sector, which ultimately improves labor productivity, resulting in increased capital accumulation and economic growth. On the other hand, it is estimated a reduction in the propensity to consume and a smaller portion of the labor force allocated in the health sector.
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References
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BAUMOL, W.J. Macroeconomics of unbalanced growth: the anatomy of urban crisis. American Economic Review, v.57, n.3, p.415–426, 1967.
BLOOM, D. E., CANNING, D; SEVILLA, J. The effect of health on economic growth: Theory and evidence. Cambridge: National Bureau of Economic Research. Working Paper nº 8.587, 2001.
CAVALCANTI, M.A.F.H.; DA SILVA, N.L.C. Impactos de políticas de desoneração do setor produtivo: uma avaliação a partir de um modelo de gerações superpostas. Estudos Econômicos (São Paulo), v. 40, n. 4, p. 943-966. 2010.
CERMENO, R. Education, health and growth: Panel regressions for Latin America, Brazil, Colombia and México. In.: Mayer, D. Mora, H., Cermeño, R. Barona, A.B., Duryeau, S. (eds) Health, growth and income distribution in Latin America and the Caribbean: a study of determinants and regional and local behavior. Research in Public Health Technical Papers, 18, Washington, DC.: Pan-American health Organization, 2000.
FIGUEIREDO, L.: NORONHA, K.V.; ANDRADE, M.V. Os impactos da saúde sobre o crescimento econômico na década de 90: uma análise para os estados brasileiros. Texto para discussão nº 219 Cedeplar/UFMG, 2003.
HASHMATI, A. On the causality between GDP and health care expenditure in augmented Solow growth model. SSE/EFI Working Paper Series in Economics and Finance nº 423, 2001.
KNOWLES, S.; OWEN, P. D. Health capital and cross-country variation in income per capita in the Mankiw Romer Weil-Model. Economics-Letters, v. 48, n.1, p. 99-106, 1995.
LOPEZ, C.; RIVERA, B.; CURRAIS, L. Health and Economic growth, findings and policy implication. London: MIT press Cambridge, 2005.
LUCAS, R.E. On the Mechanics of Economic Development. Journal of Monetary Economics, v.22, n.1, p. 3-42, 1988.
MACÊDO, F.F.R.R.; BEUREN, I.M. Relação entre composição das despesas públicas e crescimento econômico dos países da América Latina. Anais XX Congresso Brasileiro de Custos – Uberlândia, MG, 2013.
MANKIW, N. G.; ROMER, D.; WEIL, D. A contribution to the empirics of economic growth. Quarterly Journal of Economics, v.107, n.2 , p. 407-437, 1992.
MORA, H.; BARONA, A. B. Health in the economic growth of Latin America. In.: Mayer, D. Mora, H., Cermeño, R. Barona, A.B., Duryeau, S. (eds) Health, growth and income distribution in Latin America and the Caribbean: a study of determinants and regional and local behavior. Research in Public Health Technical Papers, 18, Washington, DC.: Pan-American health Organization, 2000.
ORGANIZATION FOR ECONOMIC COOPERATION AND DEVELOPMENT – OECD. Health at a glance 2015: OECD indicators. OECD Publishing, Paris, 2015.
_______________________________. Health Statistics 2016. Available at http://www.oecd.org/els/health-systems/health-data.htm. [Accessed on 01/16/2017].
RIVERA, B.; CURRAIS, L. Income variation and health expenditure: evidence for OECD countries. Review of Development Economics, n.3, v.3, 258-267, 1999.
ROMER, P.M., Endogenous technological change. Journal of Political Economy, v.5, n.1, p.71–102, 1990.
SOLOW, R.M. A Contribution to the Theory of Economic Growth. Quarterly Journal of Economics, v.70, n.1, p. 65-94, 1956.
WEIL, D. Accounting for the effect of health on economic growth. National Bureau of Economic Research, Working Paper nº 11.455, 2005.
WORLD BANK. World Development Indicators. Washington, USA, 2014.
WORLD HEALTH ORGANIZATION – WHO. World health statistics 2015. WHO Publishing, Geneva, 2015.
ZON, A. VAN; MUYSKEN, J. Health, education and endogenous growth. Paper presented at the annual conference of the International Institute of Public Finance, Kyoto, 1997. MERIT Research Memorandum, n. 97-009. Available at https://cris.maastrichtuniversity.nl/portal/files/1030114/guid-683ff455-adc7-4a69-bcc2-d4a09229e886-ASSET1.0. [Accessed on 11/23/2016].
_________________________. Health and endogenous growth. Journal of Health Economics, v.20, n.1, p.169-185, 2001.
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Published
2018-05-07
How to Cite
Coelho, A. B., & Paes, N. L. (2018). THE IMPACT OF INCREASING RETIREMENT AGE ON HEALTH SERVICES AND ECONOMIC GROWTH IN BRAZIL. Revista De Economia E Agronegócio, 16(1), 29–41. https://doi.org/10.25070/rea.v16i1.546
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