Marc Suhrcke: The contribution of health to the economy of Europe

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Marc Suhrcke: The contribution of health to the economy of Europe

  1. 1. The Contribution of Health to the Economy in the European Union Marc Suhrcke WHO Venice Office msu@ihd.euro.who.int Based on a report by Marc Suhrcke Martin McKee Regina Sauto Arce Svetla Tsolova Jorgen Mortensen
  2. 2. Outline1. Why this report?2. The economic benefits of health in EU countries3. What next?
  3. 3. 1. Why this report?2. The economic benefits of health in EU countries3. What next?
  4. 4. Our starting pointBetter healthpromotes economicgrowth in poorcountriesCan we assume thatthis is also truein HIGH-incomecountries?
  5. 5. Our (modest) contribution Suhrcke M, McKee M, Sauto Arce R, Tsolva S, Mortensen J. The Contribution of Health to the Economy in the European Union. Brussels: European Commission, 2005.Available on the European Commission website
  6. 6. Different Burden of Disease Source: WHO, World Health Report 2002
  7. 7. Different Means for Growth Physical work is much less important in generating wealth
  8. 8. 1. Why this report?2. The economic benefits of health in EU countries3. What next?
  9. 9. Relevant channels from healthto the economy: a simple framework Labour Productivity Labour SupplyHEALTH Education ECONOMY Saving
  10. 10. The EvidenceCost-of-IllnessMicroeconomic: the effect at theindividual & household levelMacroeconomic: the effect on thenational economy
  11. 11. Cost of Illness: Expenditure on coronary heart disease per 100,000 persons (€ million, 1999 prices) Direct and social care25 costs20 Employment/ informal costs1510 5 0 SA K n y nd da s an U e nd la a U ed m an rla er Sw er it z C he G Sw et N
  12. 12. Microeconomic EvidenceWages and earningsHours workedEarly retirementLabour force participationLabour supply by relatives of those in poorhealthPersonal investment in educationSaving
  13. 13. Macroeconomic evidenceHistorical contribution of health toeconomic development- 30-40% of today’s economic wealth- In some cases health > educationCross-country studies - Worldwide samples: One year life expectancy increase corresponds to 4% GDP growth - High-income countries: CVD decrease 10% corresponds to 1% GDP growth
  14. 14. ‘Full income’ – a broader perspective EU countries (1990-1998)
  15. 15. 1. Why this report?2. The economic benefits of health in EU countries3. What next?
  16. 16. More new and directly European evidenceEconomic rationale for government interventionCost-benefit evidence of intervention (esp prevention)

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