Health Capital Investment Research Articles

ИНВЕСТИЦИИ В КАПИТАЛ ЗДОРОВЬЯ КАК ФАКТОР ПОВЫШЕНИЯ ПРОИЗВОДИТЕЛЬНОСТИ ТРУДА (НА ПРИМЕРЕ КЕЙС-СТАДИ ПАО «ЛУКОЙЛ»)

The article examines how investment in health capital affects labor productivity using the example of a specific enterprise. The authors analyzed a case study of a corporate program to prevent injuries at an enterprise, studied the basis of the health capital theory, and developed strategies to increase health capital and labor productivity. The author’s approach is unique because of the case study analysis, which provides a more detailed study of a specific case in practice. The findings of the study show that investing in the health capital of an enterprise’s employees can significantly increase labor productivity, reduce illness and injury rates, and mprove employee-employer relations. The authors’ conclusions confirm the need to invest in health capital as a means of enhancing labor productivity in an enterprise. Other companies can adopt the developed strategies to improve working conditions and an employee’s well-being.

Psychotherapy – A Sound Investments In (Mental) Health Capital?

Abstract Introduction The concept of health capital views health as a form of capital that produces healthy time to individual. This stock of capital - health that is - can decrease or increase. The potential of psychotherapy as individual's investment to (mental) health capital has been rarely studied in population level. Objectives The aim of our study is to shed light on the returns on individual-level investments in health capital. We consider the use of psychotherapy as an investment in health capital. This investment offers potential returns for individual as a higher level of subsequent income. However, these returns are potentially heterogenous: we aim to show to whom the use of psychotherapy is a sound investment in health capital. Methods We model the effects of mental health, and subsequent treatments such as the use of psychotropics and psychotherapy on income using two-way fixed effects regression. Results Preliminary results show that different parts of working-age population seem to have different potential returns related to the use of psychotherapy. These heterogenous effects are related to previously reported socioeconomic status related disparities: the level of human capital i.e. income and education play a role in the profitability of the individual level investment made in the health capital by the use of psychotherapy. Conclusions The use of psychotherapy has heterogenous effects on the income of individuals. The potential of this investment to produce health capital varies with education, the level of income prior to the use of psychotherapy.

The threshold and spatial effects of PM2.5 pollution on resident health: evidence from China.

Health capital investment is an integral aspect of human capital investment, and it is vitally important to improve residents' health by encouraging them to maintain insurance. This paper estimates the potential impact of particulate pollution (PM2.5) on health insurance buyers at the city level. Using PM2.5 as a representative air pollution indicator, we construct a threshold panel model and a spatial econometric model based on 2000-2019 panel data from 256 Chinese cities and the health production function to examine the impact mechanism through which PM2.5 pollution causes changes in the number of health insurance buyers. The results indicate that higher PM2.5 pollution significantly increases health insurance buyers in China. Considering the threshold effect, per capita GDP has a nonlinear relationship with an increasing marginal effect on the higher number of health insurance buyers. Due to spatial spillover effects, PM2.5 pollution has an additional impact on the number of health insurance buyers, indicating that a lack of awareness of the spatial correlation will result in underestimating the impact of PM2.5 pollution on residents' health. The robustness of adjacency and geographic distance matrices demonstrates that the regression results are robust and reliable. The findings of this study provide a practical reference for health insurers' development and policymakers' pollution control efforts.

Investing in health capital: Does medical insurance matter?

Health capital investment is a component of human capital and can increase labor productivity in the economy. This study analyzes the returns on health investment based on the perspective of medical insurance. China’s basic medical insurance system provides a suitable institutional setting, which comprises three schemes: Urban Employee Basic Medical Insurance, Urban Resident Basic Medical Insurance, and New Rural Cooperative Medical Scheme. Using the China Health and Retirement Longitudinal Study and various econometric models, we find that medical insurance significantly impacts health outcomes of Chinese population aged 45 years and more. The result differs by the types of medical insurance, health indicators, and age groups. Furthermore, the convenience of obtaining medical insurance benefits, rarely mentioned in academic literature, is a significant factor affecting population health. From the perspective of health capital investment, investment in medical insurance must target younger groups.

Children’s Health Capital Investment: Effects of U.S. Infant Breastfeeding on Teenage Obesity

Obesity, as a health and social problem with rising prevalence and soaring economic cost, is increasingly drawing scholarly and public policy attention. While many studies have suggested that infant breastfeeding protects against childhood obesity, empirical evidence on this causal relationship is fragile. Using the health capital development theory, this study exploited multiple data sources from the U.S. and a three-way error components model (ECM) with a jackknife resampling plan to estimate the effect of in-hospital breastfeeding initiation and breastfeeding for durations of 3, 6, and 12 months on the prevalence of obesity during teenage years. The main finding was that a 1% rise in the in-hospital breastfeeding initiation rate reduces the teenage obesity prevalence rate by 1.7% (9.6% of a standard deviation). The magnitude of this effect declines as the infant breastfeeding duration lengthens—e.g., the 12-month infant breastfeeding duration rate is associated with a 0.53% (3.7% of a standard deviation) reduction in obesity prevalence in the teenage years (9th to 12th grades). The study findings agree with both the behavioral and physiological theories on the long-term effects of breastfeeding, and have timely implications for public policies promoting infant breastfeeding to reduce the economic burden of teenage and later adult-stage obesity prevalence rates.

Экономический анализ курения как негативной инвестиции в капитал здоровья

Экономический анализ курения как негативной инвестиции в капитал здоровья

Remittances and healthcare expenditure: Human capital investment or responses to shocks? Evidence from Peru

AbstractThis paper estimates the effect of international remittances on healthcare expenditures, taking into account both the interdependence with other consumption goods and the effects of health shocks. More precisely, we assess whether the budget allocation decisions of remittance‐receiving households reveal different preferences to invest in health capital, even when the simultaneous effect that health shocks may have on the demand of remittances and on other types of nondurable expenditures is accounted for. Using data from the “Peruvian National Survey of Households,” we find that remittances have a positive impact on healthcare budget shares, net of the remittance‐related income effect and independently of the occurrance of a health shock. They also have a positive impact on housing and a negative one on other expenditure items, that is, clothing, transport, and education. Hence, our results indicate a “pure” tendency of remittance‐receiving households to devote larger shares of their budget to health capital investment, rather than to other types of consumption goods.

Firm investment in human health capital

In 2005, U.S. employers spent more than $500 billion on health insurance. I argue that firms invest in worker health to mitigate the depreciation in human capital that occurs when workers get sick, which increases the productivity of human and physical capital. Using firm-level health insurance data, I find firms that have higher labor productivity, spend more on research and development, and are larger invest more in health capital. Further, health capital investment positively affects firm value and overall productivity. To identify these effects, I instrument for insurance with state mandates and the number of persons covered by insurance contracts.

Health capital investment and time spent on health-related activities

One key component in the health capital investment model in (Grossman, M. Journal of Political Economy, 80: 223–255, 1972) is time spent on improving health. However, few empirical studies have examined how time spent on health investment is determined. In this paper, we fill this void in the literature by investigating how people allocate their time for different types of health-related activities in response to economic variables. Using the American Time Use Survey, we distinguish health-enhancing and health-deteriorating leisure activities, with the rationale that these activities may respond differently to socioeconomic environment. We find that health-enhancing and health-deteriorating time respond to economic variables in opposite directions. Specifically, a higher wage rate leads to a reduction in health-deteriorating activities but an increase in health-enhancing activities, particularly those with an investment nature. This finding holds for most subsamples we examine. Our result implies substantial substitution within nonmarket time.

Здоровье в структуре человеческого капитала молодежи (Health in the Structure of Human Capital of Youth)

Russian Abstract: В работе рассмотрено здоровье молодежи с позиции теории человеческого капитала, описаны основные этапы инвестирования в капитал здоровья, а также перечислены задачи по повышению качества здоровья молодого поколения на среднесрочную и долгосрочную перспективу. English Abstract: This article examines young people's health from the perspective of human capital theory, describes the main stages of investment in health capital, and also lists the tasks to improve the quality of health of the younger generation in the medium and long term.

Hidden Consequences of Migration and Remittances in Albania

Using household survey data for Albania, the paper investigates the effect of remittances on health capital accumulation. Total expenditure is divided into two categories: expenditure on medicines and expenditure on visits and laboratory services. The estimation is presented for two separate sub groups, rural and urban area. In the paper both instrumental variable and propensity score matching are used to give answer to the research question about the impact of remittances in the health capital investment. The findings indicate that households increase their expenditure for medicines and other health services in the presence of remittance income. The positive relationship is statistically significant in the case of remittance receiving households living in the rural area. The magnitude is lower in the case of total expenditure for visits and laboratory. However, total expenditure for visits and laboratory are likely to have significant impact on the health outcome given their prevention nature. These findings show that remittance flows pay a heterogeneous role in the decision making process of remittance-receiving household members. However, these non-labor income flows may play an important role in supporting expenditures, especially for those living in rural areas.

A Theory of Education and Health

markdownabstract__Abstract__ This paper presents a unified theory of human capital with both health capital and, what we term, skill capital endogenously determined within the model. By considering joint investment in health capital and in skill capital, the model highlights similarities and differences in these two important components of human capital. Health is distinct from skill: health is important to longevity, provides direct utility, provides time that can be devoted to work or other uses, is valued later in life, and eventually declines, no matter how much one invests in it (a dismal fact of life). Lifetime earnings are strongly multiplicative in skill and health, so that investment in skill capital raises the return to investment in health capital, and vice versa. The theory provides a conceptual framework for empirical and theoretical studies aimed at understanding the complex relati onship between education and health, and generates several new testable predictions.

A Theory of Education and Health

This paper presents a unified theory of human capital with both health capital and, what we term, skill capital endogenously determined within the model. By considering joint investment in health capital and in skill capital, the model highlights similarities and differences in these two important components of human capital. Health is distinct from skill: health is important to longevity, provides direct utility, provides time that can be devoted to work or other uses, is valued later in life, and eventually declines, no matter how much one invests in it (a dismal fact of life). Lifetime earnings are strongly multiplicative in skill and health, so that investment in skill capital raises the return to investment in health capital, and vice versa. The theory provides a conceptual framework for empirical and theoretical studies aimed at understanding the complex relationship between education and health, and generates several new testable predictions.

Are remittances spent in a healthy way? Evidence from Albania

Using household survey data for Albania, the paper investigates the effect of remittances on health capital accumulation. Total expenditure is divided into two categories: expenditure on medicines and expenditure on visits and laboratory services. The estimation is presented for two separate sub-groups, rural and urban area. In the paper both instrumental variable and propensity score matching are used to give answer to the research question about the impact of remittances in the health capital investment. The findings indicate that households increase their expenditure for medicines and other health services in the presence of remittance income. The positive relationship is statistically significant in the case of remittance receiving households living in the rural area. The magnitude is lower in the case of total expenditure for visits and laboratory. However, total expenditure for visits and laboratory are likely to have significant impact on the health outcome given their prevention nature. These findings show that remittance flows pay a heterogeneous role in the decision making process of remittance-receiving household members. However, these non-labor income flows may play an important role in supporting expenditures, especially for those living in rural areas.

The Welfare Implications of Health Capital Investment

I present a model of the health capital investment decision of a firm using a moral hazard framework. Health capital investment increases the probability that a worker is present and productive. The firm cannot verify a worker's health capital investment decision. When a firm invests in health capital, the investment is verifiable because the firm contracts with the insurer. I derive the optimal contract for when the worker and for when the firm invests in health capital. When the firm invests in health capital, the level of investment is higher and wages are less volatile. In my model, firms invest more than workers because of a production externality and because it is less costly to invest in health capital than to compensate the worker for bearing the risk of an uncertain labor realization. This result improves welfare, contrary to the benchmark that workers consume more health care than is efficient ex post when firms provide health insurance. Unlike the benchmark model of a worker and insurer, my model includes a profit maximizing firm, includes an endogenous probability of getting sick, and allows the insurer to set premiums by anticipating the health care investment level of the insured.

Infectious diseases and economic growth

This paper develops a framework to study the economic impact of infectious diseases by integrating epidemiological dynamics into a neo-classical growth model. There is a two way interaction between the economy and the disease: the incidence of the disease affects labor supply, and investment in health capital can affect the incidence and recuperation from the disease. Thus, both the disease incidence and the income levels are endogenous. The disease dynamics make the control problem non-convex thus usual optimal control results do not apply. We establish existence of an optimal solution, continuity of state variables, show directly that the Hamiltonian inequality holds thus establishing optimality of interior paths that satisfy necessary conditions, and of the steady states. There are multiple steady states and the local dynamics of the model are fully characterized. A disease-free steady state always exists, but it could be unstable. A disease-endemic steady state may exist, in which the optimal health expenditure can be positive or zero depending on the parameters of the model. The interaction of the disease and economic variables is non-linear and can be non-monotonic.

Why Does Health Capital Increase in the Developed Countries and Decrease in Post-Soviet Russia? <i>(An Attempt at Post Keynesian Explanation)</i>

The article formulates the post Keynesian approach to dynamics of health capital. The author shows that this dynamics scarcely depends on rational calculation of expected benefits and costs because these are unknown. Investment in health capital is determined mainly by the degree of animal spirits, features of conventional judgment, habits, social norms and rules. In the developed countries these factors contribute to accumulation of health capital and, consequently, increasing life expectancy. In post-Soviet Russia health capital decreases - and life expectancy is low - first of all, due to investor myopia (unwillingness to take into account distant future) caused by higher uncertainty.

The Welfare Implications of Health Capital Investment

I present a model of the health capital investment decision of a firm using a moral hazard framework. Health capital investment increases the probability that a worker is present and productive. The firm cannot verify a worker's health capital investment decision. When a firm invests in health capital, the investment is verifiable because the firm contracts with the insurer. I derive the optimal contract for when the worker and for when the firm invests in health capital. When the firm invests in health capital, the level of investment is higher and wages are less volatile. In my model, firms invest more than workers because of a production externality and because it is less costly to invest in health capital than to compensate the worker for bearing the risk of an uncertain labor realization. This result improves welfare, contrary to the benchmark that workers consume more health care than is efficient ex post when firms provide health insurance. Unlike the benchmark model of a worker and insurer, my model includes a profit maximizing firm, includes an endogenous probability of getting sick, and allows the insurer to set premiums by anticipating the health care investment level of the insured.

Health Capital, Firm Investment, and Shareholder Value

In 2005, U.S. employers spent more than $500 billion on health insurance, an intangible investment that is an expense. I show how a firm's intangible health capital investment depends on human capital, labor productivity, and firm size. Firms mitigate depreciation in human capital by investing in health to increase the productivity of human and physical capital. Using firm-level health insurance data, I find firms that have higher labor productivity and spend more on research and development invest more in health capital. Health capital investment positively affects firm value. To identify this effect, I instrument for insurance with state mandates and the number of persons covered by insurance contracts.

On the Economics of Rational Self-Medication

It has been established in the medical literature that self-medicating with imperfect information about either the use of a genuine or counterfeit drug or based on wrong self-diagnosis of ailment, which is predominant especially in developing countries, is a risky investment in health capital. This paper models the decision to self-medicate and the demand for self-medicated drugs. We suppose that investment in self-medication depends on the perception of its effectiveness. The results obtained show that the decision to self-medicate depends on the relative price and perceived effectiveness of self-medication, the elasticity of the shadow value of health with respect to the quantity of health capital, and the relative effectiveness of self-medication in reducing the unpredictable changes in health capital. Furthermore, if an individual self-medicates, self-medication becomes a normal good: it increases if income increases; and it obeys the law of demand (i.e. it increases if its price, relative to that of the risk-free medication, decreases). Moreover, we have shown that some optimum subsidy can discourage self-medication.