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Lecture 9-1 econ dev

Lecture 9-1 econ dev - Lecture 9 Health Readings Todaro...

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Lecture 9: Health Readings: Todaro, Chapter 8
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Health Health is important in itself It may also be intimately linked to economic development 3 points in this lecture: 1. Relationship between health and growth? Direction of causality? Macroeconomic evidence 1. The case of HIV/AIDS 2. 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  (Deaton, 2004) 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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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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