Health capital, Taxation and Output

• Main Authors: Hsiang-Yu Chin, 金祥玉
• Other Authors: Po-Chin Wu
• Format: Others
• Language: zh-TW
• Published: 2006
• Online Access: http://ndltd.ncl.edu.tw/handle/34758944627220557442

碩士 === 中原大學 === 國際貿易研究所 === 94 === Based on the conclusion, derived by Chadwick (1842), that health expenditure can improve human capital through increasing quality of education and human capital accumulation, this paper set up a simultaneous equation system, including output equation, health capital equation and physical capital equations, to analyze the effect of health capital and taxation policy on output. In empirical evidence, I adopt Generalized Moment Method (GMM) to estimate simultaneous equation system. Yearly data spanned from 1970 to 2004 and sample countries come from G7 (Japan, United States, UK, Canada, Germany, France and Italy). The empirical results show that under a single output equation, without considering the endogeneity question, the effects of physical capital, education degree and work experience on output are underestimating. Furthermore, it also ignores the influence of health capital on output. So we have to consider the endogeneity and we can get more correctly estimation. For the estimated result of simultaneous equation system, the dependent population have positive effect on health capital accumulation. But taxation policy has negative effect on health capital. Besides, the results of physical capital show that health capital, the degree of economic openness and government taxation have positive effect to physical capital accumulation. But, output, interest rate, and education degree have negative influence in input of physical capital.