@MISC{Ricci07andtoulouse, author = {Francesco Ricci and Marios Zachariadis}, title = {and Toulouse School of Economics (LERNA)}, year = {2007} }
Share
OpenURL
Abstract
This paper investigates the nature of the aggregate production function of health services. We build a model to analyze the determinants of social health outcomes, taking into account house-holds choices concerning education, consumption, and health related expenditures. In the model, education has a positive external effect on health outcomes. Next, we perform an empirical analysis using a data set covering 71 countries. We find that society’s tertiary education attainment levels contribute positively to how many years an individual should expect to live, in addition to the role that basic education plays for life expectancy at the individual household level. This finding uncovers a key externality of education on the ability of society to take advantage of frontier health-related technologies.