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We found in this chapter that better health did not lead to higher income per capita. We saw that higher life expectancy amounts to
We found in this chapter that better health did not lead to higher income per capita. We saw that higher life expectancy amounts to an increase in population. Use the Solow model in Chapter 4 to show the effect of a variation of an exogenous increase in the size of popula- tion on income per capita. What do you con- clude? Then show the effect of an exogenous increase in total factor productivity on income per capita due to better health. Use both effects to show why empirical research finds no effect on income per capita.
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