Department of Economics, University of Connecticut, Storrs, CT 06169, USA. morand@uconnvm.uconn.edu
Abstract:
This paper integrates investments in health to a standard growth model where physical and human capital investments are the combined engines of growth. It shows the existence of two distinct health regimes separated by an "epidemiological transition." The various patterns of this transition identified in the epidemiological literature can be mapped into the model. The model also leads to the important hypothesis that the epidemiological transition may induce an economy to switch to a modern growth regime.
