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Original Articles

Economic growth and health: direct impact or reverse causation?

Pages 761-764 | Published online: 06 Oct 2010
 

Abstract

The purpose of this paper is to identify the role of health status in productivity. In order to check the existence of reverse causation suggested by previous studies the Hausman test was carried out and different sets of instruments were used as exogenous determinants of health expenditure. Variables related to health expenditure were used to estimate the elasticity and these produced accepted results. Evidence was obtained to support the positive effect of health on economic growth.

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