Paper Title :Health, Human Capital, Wealth, and Business Cycles

Author :Wei-Bin Zhang

Article Citation :Wei-Bin Zhang , (2019 ) " Health, Human Capital, Wealth, and Business Cycles " , International Journal of Management and Applied Science (IJMAS) , pp. 20-27, Volume-5,Issue-12

Abstract : This study is to identify existence of business fluctuations in a growth model with endogenous health, human capital and wealth by Zhang (2018). Zhang synthesizes the main ideas four important models in economic theory within a comprehensive framework. These traditional models are the Solow one-sector neoclassical growth mode, Arrow’s learning by doing model, the Uzawa-Lucas two sector model, and Grossman’s health growth model. The model also applies Zhang’s idea about creative leisure or learning by consuming, concept of disposable income and utility. Health service and education are determined in markets. The model examines dynamic interactions between wealth accumulation, health change, human capital growth, economic structural change, and time distribution between work, health caring, and education under perfect competition. This paper extends Zhang’s model to allow time-independent parameters to be time-dependent. We simulate the model to identify existence of equilibrium points, plot motion of the dynamic system, and depict oscillations due to different exogenous shocks. Keywords - Business Cycle; Exogenous Shocks; Health, Human Capital, Wealth Accumulation

Type : Research paper

Published : Volume-5,Issue-12

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