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Originally Posted by donsutherland1  Just a matter of opinion, as I have not looked at the relationship between economic development and health outcomes in any degree of great detail, it would not surprise me if diminishing marginal returns manifest themselves in that relationship on account of some of the tradeoffs Tapia and Ionides mention. |
Diminishing returns is more apt at explaining more general income/happiness relationships. Kaun (2005, Income and happiness: earning and spending as sources of discontent, Journal of Socio-Economics) gives a useful example via reference to leisure:
“Forty to fifty years ago, one could enjoy camping with little more than a tent, ice chest, lantern, and Coleman stove. These, along with a few books, a folding chair, and perhaps a fishing rod represented standard equipment. No longer. Today’s RV is decked with rafts, motorbikes, surfboards, scuba diving equipment and TV antennas. Inside, all the “comforts” of home, including TV, VCR and lap-top computer, leave little time for the Grishman novel lost somewhere in the clutter—if it was included at all. Never mind the negative externalities imposed on one’s crowded neighbors, all of whom have traded one dense urban environment for another. The pleasure derived from the vast array of “goods” will surely be diminished due to the time and annoyance their simple maintenance requires.”
However, whilst linked to this form of analysis, I think we should not underestimate the repercussions of the changes in the effects of economic growth. Ultimately, we've got an additional question mark for sustainable development. Rather than just referring to the general availability of factors of production, we have to consider the quality of the labour stock. As health problems intensify with economic growth, the strains on non-labour inputs also increase.