Disease and development
Subtitle: the effect of life expectancy on economic growth
By: Daron Acemoglu, Simon Johnson.
Contributors: Johnson, Simon.; National Bureau of Economic Research.
Series: NBER working paper series -- no. 12269.; Working paper series (National Bureau of Economic Research) -- working paper no. 12269.
Publisher: National Bureau of Economic Research
Published: 2006
Place of publication: Cambridge, Mass
Language: eng
Number of pages: 45
Subjects: Life expectancy -- Economic aspects; Economic development -- Mathematical models; Mortality -- Mathematical models
Description: "What is the effect of increasing life expectancy on economic growth? To answer this question, we exploit the international epidemiological transition, the wave of international health innovations and improvements that began in the 1940s.  We obtain estimates of mortality by disease before the 1940s from the League of Nations and national public health sources.  Using these data, we construct an instrument for changes in life expectancy, referred to as predicted mortality, which is based on the pre-intervention distribution of mortality from various diseases around the world and dates of global interventions.  We document that predicted mortality has a large and robust effect on changes in life expectancy starting in 1940, but no effect on changes in life expectancy before the interventions.  The instrumented changes in life expectancy have a large effect on population; a 1% increase in life expectancy leads to an increase in population of about 1.5%.  Life expectancy has a much smaller effect on total GDP both initially and over a 40-year horizon, however.  Consequently, there is no evidence that the large exogenous increase in life expectancy led to a significant increase in per capita economic growth.  These results confirm that global efforts to combat poor health conditions in less developed countries can be highly effective, but also shed doubt on claims that unfavorable health conditions are the root cause of the poverty of some nations"--National Bureau of Economic Research web site.
Notes: "May 2006"

Includes bibliographical references (p. 38-45).

Also available in PDF from the NBER world wide web site (www.nber.org).