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ANNALS OF ECONOMICS AND FINANCE 14-2, 329–366 (2013) Health and Economic Growth Robert J. Barro Harvard University 1. INTRODUCTION Since the mid 1980s, research on economic growth has experienced a boom, beginning with the work of Rome r (1986). The new “endog enous growth” theories have focused on productivity advances that derive from technological progress and increased human capital in the form of education. Barro and Sala-i-Martin (1995) explore these theories and also discuss extensions to allow for open economies, diﬀusion of technology, migration of persons, fertility choice, and variable labor supply. The government can be important in the models in terms of its policies on main tena nce of prop- erty rights, encouragement of free markets, taxation, education, and public infrastructure. One area that has received little attention in the recent literature on growth theory is the two-way interplay between health and economic growth. Two preliminary eﬀorts in this direction are Ehrlich and Lui (1991) and Meltz er (1995). Also, the empirica l work of Barro (199 6) and others sug- gests that health status, as measured by life expectancy or analogous ag- grega te indicators, is an important cont ribut or to subse quen t growth. In fact, initial health seems to be a better predictor than initial education of subsequent economic growth. The main purpose of this study is to apply the spirit and apparatus of the recent advances in growth theory to the interaction between health and gro wth. The analys is is conc eptual and is intended to form the basis for further theorizing and for empirical analyses of the joint determination of health and growth. The discussion begins with a survey of existing theories and empirical evidence on the determinants of economic growth. Then the paper develops models of the interplay between health and growth. 329 1529-7373/2013 All rights of reproduction in any form reserved.

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