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Dynamic Interactions Between Health, Human Capital and Wealth

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  • Wei-Bin Zhang
Abstract
This paper proposes a dynamic economic model with health, human capital and wealth accumulation with elastic labor supply. The economic system consists of one industrial, one health, and one education sector. Our model is a synthesis of four main models in economic theory: Solow�s one-sector neoclassical growth mode, the Uzawa-Lucas two sector model, Arrow�s learning by doing model, and Grossman�s growth model with health. The model also includes Zhang�s idea about creative leisure or learning by consuming. Demand and supply of health service and education are determined by market mechanism. The model describes dynamic interdependence among wealth, health, human capital, economic structure, and time distribution among work, health caring, and education under perfect competition. We simulate the model and examine effects of changes in the propensity to consume health caring, the efficiency of producing health caring, the propensity to receive education, and the propensity to save.

Suggested Citation

  • Wei-Bin Zhang, 2018. "Dynamic Interactions Between Health, Human Capital and Wealth," Academicus International Scientific Journal, Entrepreneurship Training Center Albania, issue 17, pages 122-145, March.
    • Handle: RePEc:etc:journl:y:2018:i:17:p:122-145
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    References listed on IDEAS

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    Cited by:

    1. Wei-Bin Zhang, 2018. "Economic Growth and Health Dynamics with Government Subsidies for Healthcare," Acta Oeconomica Pragensia, Prague University of Economics and Business, vol. 2018(3), pages 3-23.
    2. Wei-Bin Zhang, 2018. "Health, Environment, and Wealth," Izvestia Journal of the Union of Scientists - Varna. Economic Sciences Series, Union of Scientists - Varna, Economic Sciences Section, vol. 7(3), pages 109-123, December.
    3. Wei-Bin Zhang, 2020. "Cournot-Nash Family Decision and Economic Growth in an Extended Solowian Model," Academicus International Scientific Journal, Entrepreneurship Training Center Albania, issue 21, pages 101-114, January.

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