Health And Stochastic Endogenous Growth Template For Master Thesis Of Huazhong University Of Science And Technology

This paper analyses the relationship between health and economic growth. In orderto prolong life or improve health, one society must distribute some economic resource toprevent and cure people's disease. But resource is always exiguous, we have to face choicehow to distribute it. Now we can get a simple conclusion that health is very important toeconomic growth in a society.The first charter of the paper introduces the development of the research on economicgrowth and the means of modern analysis of the macro-economic research, put forwardresearch direction, purposes and signification of the paper.The second charter extends the two-sector Uzawa-Lucas model of economic growthand discusses the optimal distribution between the health sector and the production sec-tor,and proofs the stability of the track of economic growth.The third charter develops a stochastic endogenous economic growth model. Whenhealth that affects people's welfare–inferior to consumption–enters the utility function, thispaper discusses how the paraments of the policy affect the economic growth and societywelfare. Under other conditions unchanged, we should reduce private health investmentin order to improve economic growth; at the same time we should increase private healthinvestment in order to improve individual welfare.The last charter discusses further the stochastic model on the base of the third charter,but health becomes a dynamic variable and gets a new limited equation, analyses furtherthe effect of health in the track of economic growth. And this paper draws the conclusionthat the increasing ?exibility which is the output of productive sectors on the level of healthcare will improve economic growth rate, but the increasing ?exibility which is the output ofhealth sectors on the level of health care will reduce economic growth rate.