Theoretical and empirical evidence on the bidirectional connection between health and economic growth

Abstract

The concern of economists and health economists to explore the probable links between health, productivity, economic growth and welfare dates from the 60s. Then, T. Schultz (1959) created the term "human capital." and his research was followed by G. Becker's (1964). In the following decades studies with similar purposes proliferated, which were aimed at empirically confirming the intuition about the bidirectional connection between health and growth. Authors like M. Grossman (1972), R. Barro (1996), developed new models from endogenous growth theory, and with a new approach. This new approach was based on the premises that health had a dual role as consumption and investment and that health was an important determinant of income and States' economic growth. Currently, the economic literature in this area is vast and can be useful for government agencies to promote and implement better public health policies.