Childhood preventive care,adult healthcare and economic growth: The role of healthcare financing |
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Authors: | Maame Esi Woode Carine Nourry Bruno Ventelou |
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Affiliation: | 1. Aix-Marseille University (Aix-Marseille School of Economics-GREQAM CNRS UMR 7316), Marseille, France;2. SESSTIM–INSERM UMR 912, Marseille, France;3. EHESS, France;4. Institut Universitaire de France, France |
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Abstract: | We analyze the impact of healthcare financing on economic growth, focusing on the issue of the joint public–private financing of healthcare (co-payment). We use an overlapping-generations model with endogenous growth based on health human capital accumulation, where families pay for childhood preventive care and the government can either fully finance or co-finance adulthood curative care. From a growth maximizing perspective, distortionary taxes give an advantage to co-financing. Nevertheless, we prove that, if agents are assumed to be heterogeneous in preferences, full financing can become the best option. |
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Keywords: | O11 I18 |
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