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On the Relation Between Health and Income: A Cross-Country Analysis Cover

On the Relation Between Health and Income: A Cross-Country Analysis

Open Access
|Aug 2019

Figures & Tables

Fig. 1

Total health spending per capita in 2010

Source: World Health Organization 2010.

Fig. 2

The positive correlation between health and wealth (average for 1990–2011)

Source: Own preparation.

Fig. 3

Estimated Incidence Rates of All Forms of Tuberculosis per 100,000

Source: University of Wisconsin 2012.

Fig. 4

The negative correlation between wealth and TBC incidence

Source: Own preparation.

Fig. 5

The S-Shaped Curve and the Poverty Trap

Source: Banerjee and Duflo 2011.

Fig. 6

The relation between the incidence of TBC and weighted precipitation

Data: The data on TBC from WDI, The World Bank. Data on population-weighted precipitation from Dell, Jones, and Olken (2008).

Tab. 1

Summary Statistics

VariableObservationsMeanStandard Deviation
GDP per capita330010585.4613345.09
Investment Rate23680.210.13
Trade as GDP Share36920.870.50
Primary School22350.830.24
Completion Rate
Weighted Temperature75622.585.00
Weighted Precipitation75613.357.66
TB Incidence4191131.22167.41

[i] Source: Own preparation.

Fig. 7

The relation between the incidence of TBC and weighted temperature

Data: The data on TBC from WDI, The World Bank. Data on population-weighted temperature from Dell, Jones, and Olken (2008).

Tab. 2

Regression Results

Log GDP per capitaLog health expenditureTBC incidenceLog health expenditureTBC incidence
Second stage regression
Health indicator0.304-0.1230.043-0.035
(0.000)(0.000)(0.774)(0.904)
Primary school completion rate0.2630.5460.2280.279
(0.000)(0.000)(0.035)(0.003)
Investment as % of GDP0.0960.4670.1300.140
0.211(0.000)(0.569)(0.588)
Trade volume as % of GDP0.1860.2100.1130.108
(0.000)(0.000)(0.068)(0.046)
First stage regression
Temperature (weighted)-0.075-0.041
(0.022)(0.085)
Precipitation (weighted)-0.005-0.005
(0.087)(0.083)
Primary school completion rate0.231-0.154
(0.424)(0.260)
Investment as % of GDP1.172-0.576
(0.009)(0.068)
Trade volume as % of GDP-0.237-0.056
0.123(0.504)
Constant6.6368.2577.3917.595
(0.000)(0.000)(0.000)(0.000)
N of observations9971259178310
R squared between90.5%68.4%81.1%71.8%
R squared within65.7%18.0%17.4%8.5%

[i] Note: Data from WDI, The World Bank, Dell, Jones, and Olken (2008) and Penn World Tables (ed. 5.6). Sargan-Hansen test for overidentifying restrictions does not reject the null of validity.

DOI: https://doi.org/10.1515/ceej-2018-0020 | Journal eISSN: 2543-6821 | Journal ISSN: 2544-9001
Language: English
Page range: 230 - 243
Published on: Aug 28, 2019
Published by: Faculty of Economic Sciences, University of Warsaw
In partnership with: Paradigm Publishing Services
JEL:

© 2019 Katarina Kobylinski, Joanna Tyrowicz, published by Faculty of Economic Sciences, University of Warsaw
This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 License.