THE RELATIONSHIP BETWEEN PUBLIC AND PRIVATE HEALTH INVESTMENT AND ECONOMIC DEVELOPMENT BASED ON THE OVERLAPPING GENERATIONS (OLG) MODEL

ABSTRACT As an important part of human capital, healthy human capital plays a great role in promoting economic development. Based on the overlapping generations (OLG) model, this study establishes a correlation analysis model between healthy human capital and economic growth. This model takes utility maximization as the theoretical carrier to study how individuals promote economic growth while pursuing the maximization of their own health capital accumulation. The model can analyze the promotion mechanism of healthy human capital on economic growth, so as to provide decision support for relevant personnel. Taking the panel data of 11 provinces and cities in China as samples, this paper makes an empirical analysis of the model. The results show that healthy human capital investment in coastal areas is generally high, and the relationship between healthy human capital and economic growth conforms to the inverted U-shaped development model, so we should pay attention to the reasonable proportion of healthy human capital investment. In addition, from the fitting effect of the regression model, the F-statistic values of model 1 and model 2 are 672.6327 and 1240.188, which shows that the fitting accuracy of the two regression models is higher.