Lecture 9 - important additions

Lecture 9 - important additions - Lecture 9: Health,...

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Lecture 9: Health,  Population and Development Readings: Todaro, Chapter 8 and 6
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Health Health is important in itself It may also be intimately linked to economic development 5 points in this lecture: 1. Direct impact of health on productivity 2. Health, population, fertility and growth 3. What to do in practice? Progresa 4. The case of HIV/AIDS 5. Interventions to reduce propagation of HIV/AIDS
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1. Health – Growth  (Deaton, 2004)
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1. Health – Growth  (Deaton, 2004)
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1. Health – Growth  (Deaton, 2004)
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1. Health – Growth Health → Growth or Health ← Growth? There could be a link through nutrition Under-nutrition causes: Retardation of growth, infections, diseases Worse cognitive development Less muscular strength (decrease of work capacity) Psychological consequences (depression, apathy…)
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Energy balance of human body 1. Energy input Food (linked to income) 1. Resting metabolism Energy required for temperature, heart, respiratory action… Food and Agricultural Organization (FAO): 1,700 kcal /day (European male of 65kg) Depends on many factors (Body Mass Index,…) 1. Energy required for work FAO: 400 kcal/day (not very much….) Clark and Haswell (1970): Carrying a log of 20kg: 213 kcal/hour Bush clearing: 372 kcal/hour Tree felling: 502 kcal/hour 4. Storage and borrowing If deficit (1<2+3), then run down stores from the body, under-nutrition If surplus (1>2+3), then body can dissipate or store
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Note: units Scientific notation: 1 cal = energy needed to increase the temperature of 1 gram of water by 1 °C 1 kcal=1000cal Nutrition notation: 1 food calorie=1 C alorie=1kcal (of the scientific notation) Therefore, on the food labels, you see Calorie, which are in fact kcal (scientifically) I use the scientific notation
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Work capacity curve Relationship between nutrition and work capacity Nutrition (≈income) Work capacity
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Work capacity curve Relationship nutrition → work capacity Nutrition (≈income) Work capacity Resting metabolism Nutrition increases work capacity Decreasing returns
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Work capacity curve Relationship work capacity → income (suppose piece rate salary) Here s 1 >s 2 (for same work, more income) Nutrition (≈income) Work capacity s 1 s 2
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Work capacity curve Let’s put it all together: Nutrition (≈income) Work capacity s 1
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Work capacity curve Let’s put it all together: X 1 → X 2 → X 3 → X 4 …until C A, C stable equilibrium, B unstable equilibrium Vicious cycle of poverty (but policy implication?) Nutrition (≈income) Work capacity s 1 A B C X 1 X 2 X 3 X 4
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Implication: 1) employer The employer has every incentive to improve the workers’ nutrition Maybe some tasks cannot even be performed by under- nourished workers Problem: The employee may not be there tomorrow, but work for somebody else The employer does not capture the fruits of his investment
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Lecture 9 - important additions - Lecture 9: Health,...

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