The Research Of Public Financial Expenditure Of Health,Health Human Capital And The Economic Growth

As an important factor of the economic growth,human capital has always been the focus of economic scholars.With the development of the theories of economic growth and the increase of data availability,the study of human capital is no longer limited to the educational human capital.As an important form of human capital like the education,health is the basis of the individual to participate in productive activities and accept education,which has got more and more attention by people.At the same time,the rapid development of the economy also provides the residents with more consumption choices which are diversified and suitable for the health needs of residents.The scale and efficiency of public financial expenditure of health will affect the accumulation of health human capital in a region,and then they will have an impact on regional economic growth.Therefore,it is of great theoretical and practical significance to explore the internal mechanism and the effect of public financial expenditure of health,health human capital and economic growth when formulating public health expenditure policy.The main framework of the paper is as follows: first of all,a DSGE model is built which includes the homogeneity inhabitants,manufacturers producing no difference products and the government who gets involved in economic activities through taxation.In the case of the optimal decision of the residents,the manufacturers and the government,the tripartite economic subjects' optimal equilibrium equations are got.Secondly,by using numerical simulation method,the economic effect of public health financial expenditure on human capital and economic growth is simulated under the circumstance when the economic variables are changed,for example,government expands the scale of public financial expenditure of health and the economy occurs the technology shocks.Finally,based on the panel data of China's 31 provinces from 2003 to 2014,the empirical analysis is carried on by using simultaneous equations model and panel threshold model,the results show that the health human capital has significant threshold effect on regional economic growth under the influence of public financial expenditure of health.The theoretical model results are verified by the analysis of the estimation results of two measurement model parameters,finding that there should be an appropriate proportion relationship among the scale of the public financial expenditure of health,the accumulation of the health human capital and the economic growth.The conclusions of this paper are as follows: firstly,there is a positive effect between public financial expenditure of health and the accumulation of health human capital.Secondly,the accumulation of health human capital improves the health conditions of the residents and raises labor productivity,and it has a significant positive effect on the regional economic growth.Thirdly,under the influence of public financial expenditure of health,the health human capital has significant threshold effect on the regional economic growth.