Health Care and Economic Growth

Pascal Gourdel (1) , Liem Hoang-Ngoc (2) , Cuong Le Van (1) , Tédié Mazamba (3)

1 CERMSEM - CEntre de Recherche en Mathématiques, Statistique et Économie Mathématique
2 MATISSE - UMR 8595 - Modélisation Appliquée, Trajectoires Institutionnelles et Stratégies Socio-Économiques
3 UP2 - Université Panthéon-Assas

In this paper we adapt a discrete time version of the Lucas model with social protection where part of the total production is devoted to the health expenditures. The output is produced by labor and the technomogy exhibits externalities. The rate of growth of human capital depends on the ratio of health expenditures over GDP. We give conditions for which the optimal human capital sequences are increasing. When the instantaneous utility function is isoelastic and the production function is COBB-DOUGLAS, we prove that the optimal human capital sequences grow at constant rate. Moreover, we prove there exists a unuique equilibrium in the sense of LUCAS [1988] or ROMER [1986]

Mots clés: Health Care; Optimal Growth; Lucas Model; Human Capital

Domaines: Economies et finances; Optimisation et contrôle [math.OC]

Pascal Gourdel, Liem Hoang-Ngoc, Cuong Le Van, Tédié Mazamba. Health Care and Economic Growth. Annales d'Economie et de Statistique, 2004, 75/76, pp.257-272. ⟨halshs-00119022⟩