Health, education and economic growth: testing for long-run relationships and causal links in the united states

• AKA, Bédia F ^[1] ; DUMONT, Jean Christophe ^[2]
  1. [1] University of Bouaké, Côte d'Ivoire
  2. [2] OECD, Paris
• Localización: Applied econometrics and international development, ISSN 1578-4487, Vol. 8, Nº. 2, 2008, págs. 101-110
• Idioma: inglés
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• Resumen

  • This paper examines the causal relationships between human capital (Education, and Health) and Economic growth (GDP per capita) for the USA using time series approach. We find cointegration between the series under study meaning that the variables have long-run relationships. The EC-VAR investigations show bi-directional causality between human capital variables and growth. Given the bi-directional causation, we perform variance decomposition and impulse response functions to see the importance of the impacts among these variables. The results show that the long-run dynamics of economic growth can be explained by past education level while a lesser part of these variations are related to health level. In the long-run horizon education shocks are important at explaining health level, although growth shocks account for about more than one-third of health. Economic growth accounts for more part in the explanation of education level.