Dynamic Stochastic General Equilibrium Analysis Of Health Investment And Economic Development

Health business is a matter of people's livelihood,it relates not only people's health but also residents' happiness.China has always been concerning about the health system innovation,health business investment,and has achieved certain results.Comparing with developed countries,China still has problems of insufficient health investment and slow progress of the level of residents' heath.Scholars have done a lot of researches on the relationship between health investment and economic development from the theoretical and empirical aspects,but there is no unanimous conclusion.The difference of the impact between personal health investment and public health investment is lack of theoretical research.There is little consideration involving the impact of uncertainty on health system.Therefore,based on the view of healthy human capital,this paper establishes a dynamic stochastic general equilibrium model to explore the relationship between health investment and economic development.First,this paper explores the mechanism of health investment on economic development theoretically.On the basis of defining the concept of health investment,healthy human capital and economic development,this paper analyzes the relationship between health investment and healthy human capital,and then explores its mechanism of influencing all aspects of economic development.Second,this paper analyzes the differences in health outcomes between personal and public health investments and integrates private health investments and public health investments into health human capital production function as healthy human capital investment to build a Dynamic random equilibrium model that includes production,health human capital and representative individuals.Finally,based on the calibration of the parameters,the Bayesian method is used to estimate the parameters of the model,and the impulse response analysis,the variance decomposition,the comparative static analysis of the proportion of personal health investment and the proportion of public health investment are analyzed.The results show that:(1)Take the comprehensive index of child mortality as a proxy variable of healthy human capital,the contribution of personal health investment to healthy human capital output is greater than that of public health investment,indicating that personal health investment is not as little as possible;(2)Malignant health emergencies will hinder economic growth and the accumulation of healthy human capital,and the impact has a short duration;(3)The impact of public health investment on social welfare was "inverted U",and the impact of public health investment on output,personal health investment on output and social welfare were first increased to the level of "ladder";(4)Under the assumption of individual homogeneity,there is a best amount of the proportion of public health investment in GDP that makes output and social welfare are also reach the best,while there is no proportion of personal health investment in the proportion of investment that makes output and social welfare are in the best condition.To sum up,it should strengthen the guidance of personal health investment,and take with the public health investment policy supporting personal health investment,and increase the expenditure of health industry in undeveloped areas and pay attention to the health investment on prevention.