ECON 112 Lecture Notes - Lecture 6: Capability Approach, Production Function, Discount Window
Document Summary
Health and education are important objectives of development, as reflected in amartya. Sen"s capability approach, and in the core values of economic development: freedom and opportunities that can be available for them, they are important ends within themselves. Health and education are also important components of growth and development inputs in the aggregate production function: they are inputs in the production function, health and education increases productivity good for economic growth. Education and health as joint investments for development. These are investments in the same individual: there are synergies. Greater education capital may improve the returns to investments in health: public health programs need knowledge learned in school, basic hygiene and sanitation may be taught in school, education needed in training of health personnel. Improving health and education: increasing incomes is not sufficient. Significant market failures in education and health require policy action. Investing in education and health: the human capital approach.
