Abstract

This study investigates the relationship between economic conditions and health. Total mortality and eight of the ten sources of fatalities examined are shown to exhibit a procyclical fluctuation, with suicides representing an important exception. The variations are largest for those causes and age groups where behavioral responses are most plausible, and there is some evidence that the unfavorable health effects of temporary upturns are partially or fully offset if the economic growth is long-lasting. An accompanying analysis of micro data indicates that smoking and obesity increase when the economy strengthens, whereas physical activity is reduced and diet becomes less healthy.

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I thank Angus Deaton, Randall Ellis, Albert Ma, Kenneth Snowden, and seminar participants at the Research Triangle/Duke and Harvard/Boston University health workshops, Cornell University, the University of Calgary, Princeton University, and the Board of Governors of the Federal Reserve System for helpful suggestions. Financial support from the National Institute of Alcohol Abuse and Alcoholism (AA09268-01A1) and the National Science Foundation (SES9876511) is gratefully acknowledged.