Literature Review
The Relationship Between the Economy and Healthcare
The economy and the healthcare system affect each other in a multitude of ways. A study done by \citet{Ottolini2016} has suggested that the healthcare budget should consider a patients’ needs and preferences when treating a disease. In addition, the healthcare system must use economics in order to evaluate its social equity. In a healthcare system, these analyses are important in order to maximize its efficiency while maintaining the pre-determined budget for it.
There is also a relationship between infectious diseases, human capital, and economic growth. In a study done by \citet*{Goenka2020}, the researchers developed an endogenous growth model relating the causes of ill health to the extent of the infectious disease being studied. This in turn prevents people from working, which decreases human capital. The study also showed that forgotten diseases does not affect mortality in a significant manner, however, they mostly affect the poor, which makes it an indicator of poverty.
Lastly, there is a relationship between the socioeconomic development and life expectancy of a country. In a study done with European accession candidate countries \citep{Miladinov2020}, the income per capita of a country and the infant mortality rate have significant effects on the life expectancy at birth. The study found that there is an inverse relationship between a country’s population health and socioeconomic development with infant mortality, while there is a direct relationship with a country’s population health and socioeconomic development with life expectancy. However, it is notable that the sample is small, which makes it non-representative for all of the countries in the world.
These examples show that the economy and healthcare are interconnected and have a deep relationship because of the inherent demand for healthcare, especially during the COVID-19 pandemic.