Economics%20116%20-%20Lecture%2014%20-%20Final

Economics%20116%20-%20Lecture%2014%20-%20Final - Economics...

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Economics 116: Economic Development UC San Diego, Spring 2009 Prof. Karthik Muralidharan Department of Economics Lecture 14
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Administrative Stuff Midterm Will be returned today after lecture Detailed grading rubric and curve information will be put up on course website later today Mean was 37.7 on 70 Problem Set 3 will be up over the weekend No office hours today
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Lecture Outline (5/14/09) Pharmaceuticals in the Developing  World Population Gender
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Improving Life Expectancy over Time Main historical determinant of increasing life expectancy was: Increasing income resulting in: Improved nutrition (private consequences of rising income) Improved sanitation, water supplies, and other public health investments (public consequences of rising income – more tax revenue and public goods) However, the connection between income and life expectancy is less deterministic now
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Income and Life Expectancy Today (1) Much higher life expectancy (LE) than would be consistent with income Vietnam – LE of 69 years, with a GDP/ Cap that is less than 1/10 th that of the US in 1900 (!) , when the LE in the US was 47 years GDP/Capita in sub-Saharan Africa FELL by 13% between 1972 and 1992, but: LE ROSE by 10% from 45 to 49 years Infant mortality (IM) fell by 30% from 133/1000 to 93/1000
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Income and Life Expectancy Today (2) Preston (1975) estimates that income only accounts for 10-25% of the growth in world LE between the 1930s and 1960s Suggested that the diffusion of medical technology was a major factor for increasing life expectancy at any given level Jamison et al (2001) attribute 74% of the decline in IM rates from 1962 – 1987 to technical progress, 21% to
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Income and Life Expectancy Graph
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What types of technical progress Some simple non-medical innovations: Oral rehydration therapy for diarrhea But, large role for pharmaceuticals in improving life expectancy – especially the use of vaccines For instance, 75% of children around the world receive the WHO package of vaccines through the “Expanded Program on Immunization” Preventive care is MUCH more cost effective at saving lives than curative care Especially in light of failures in service delivery such as absence of public sector medical
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Limited LDC Vaccine Research However, while the benefits to developing
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This note was uploaded on 05/06/2010 for the course ECON ECON 116 taught by Professor Muralidharan during the Spring '09 term at UCSD.

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Economics%20116%20-%20Lecture%2014%20-%20Final - Economics...

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