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The GDP Value of Twentieth‐Century Health Improvements in Developed Economies: Initial Estimates for E ngland
Author(s) -
Hickson Kerry
Publication year - 2014
Publication title -
review of income and wealth
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.024
H-Index - 57
eISSN - 1475-4991
pISSN - 0034-6586
DOI - 10.1111/j.1475-4991.2012.00524.x
Subject(s) - economics , value (mathematics) , welfare , measures of national income and output , economy , macroeconomics , market economy , statistics , mathematics
Economists are aware that conventional measures of national income do not capture everything that is important to individuals. In particular, the value of huge improvements in health over the twentieth century has gone uncalculated. U sher and N ordhaus have emphasized the virtues of including mortality improvements in some form of extended national income measure. This article therefore sets out a methodology that can be used to calculate the value of mortality and morbidity improvements. The results for E ngland indicate that the value of health improvements in developed economies have added at least 0.3 percent per annum to twentieth‐century GDP growth rates. The results demonstrate that those interested in understanding improvements in economic welfare need to pay much more attention to improvements in health.