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lecture15_3_02_11_large - LECTURE 16: The Spillover...

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LECTURE 16: The Spillover Benefits of Health Improvement
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•How does health fit into debate about why poor countries are poor?
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•How does health influence economic development (a major if not primary interest of many development economists in global health)? •There is currently considerable debate over which of two major hypotheses explains why poor countries are poor: •(1) Geography (health is a part of this) •Jeff Sachs and others •(2) Institutions (“rules of the game” governing human interaction – political and economic behavior) •Hernan de Soto; Acemoglu, Johnson, and Robinson; others
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(1) Geography: Agriculture, disease, and transportation costs related to trade •Causal relationship through these channels – or “omitted variables?”
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Geography and ease of agriculture:
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Geography and disease:
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Geography and transportation costs related to trade:
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(2) Institutions (“rules of the game” governing political and economic activity)
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•In what ways might health improvement stimulate economic development?
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•In what ways might health improvement stimulate economic development? •Broadly: •Direct effects (higher productivity, demographic dividend, etc) •Indirect effects (incentives for saving, investing in human capital, etc)
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•First consider the role that health plays in the spirit of the geography hypothesis •Many development economists consider improving education to be a foundation of economic development, and a heavy disease burden may produce low levels of education… •*Why?
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•“Longevity and Human Capital Investments: Evidence from Maternal Mortality Declines in Sri Lanka” (Seema Jayachandran and Adriana Lleras-Muney) takes seriously the planning horizon explanation for why health improvement might promote greater educational attainment •If important, other choices related to longevity (such as savings) also matter
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lecture15_3_02_11_large - LECTURE 16: The Spillover...

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