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Health and Economic Growth: Reconciling the Micro and Macro Evidence.

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Economists reconcile differing estimates of population health's economic return. By accounting for indirect effects, both micro and macro approaches align, revealing consistent macroeconomic returns to health.

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Productivityeconomic developmenthuman capitalpopulation health

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Area of Science:

  • Economics
  • Public Health
  • Health Economics

Background:

  • Discrepancies exist between micro-based and macro-based economic approaches to assessing population health returns.
  • Macro-based estimates are often significantly larger or near zero compared to micro-based estimates, creating a micro-macro puzzle.

Purpose of the Study:

  • To reconcile the divergent findings from micro-based and macro-based economic assessments of population health.
  • To investigate the impact of indirect health effects on macroeconomic returns.

Main Methods:

  • Employed economic modeling to analyze the relationship between population health and economic growth.
  • Controlled for indirect effects of health on income per capita, often omitted in micro-based analyses.

Main Results:

  • Reconciled micro-based and macro-based approaches by incorporating indirect health effects.
  • Demonstrated that macroeconomic returns to health fall within the range of microeconomic estimates.

Conclusions:

  • The micro-macro puzzle regarding the economic return to population health is resolved.
  • Both micro- and macro-based economic approaches are consistent when indirect health effects are properly accounted for.