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Strittmatter, Anthony; Sunde, Uwe (2011): Health and economic development: Evidence from the introduction of public health care. IZA Discussion Papers / Forschungsinstitut für Zukunft und Arbeit, Bonn, 5901
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Abstract

This paper investigates the causal effect of changes in health on economic development using a long panel of European countries. Identification is based on the particular timing of the introduction of public health care systems in different countries, which is the random outcome of a political process. We document that the introduction of public health care systems had a significant immediate effect on the dynamics of infant mortality and crude death rates. The findings suggest that a reduction in infant mortality or crude death rates exhibited a positive effect on growth in income per capita and increased population growth.