Education and Medicine as Health Producers

Abstract

We give a description of the production function of health in a country and survey the empirical studies that describe similar relationships. Our estimations are based on updated reports of life expectancy, GNP, literacy rate, physicians and hospital beds per capita. We also followed changes in the last seven years. We find the literacy rate to be statistically significant in prolonging life while the contribution of doctors and wealth is significant mainly in the less developed countries. The change along time is small but points to an increase in the production elasticity of medicine.