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Impact Of Income Inequality On Health: Does Environment Quality Matter?

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Executive Summary

This paper examines the link between health indicators, environmental variables and income inequalities. Theoretically, all the mechanisms developed in the literature underline a negative impact of income inequality on health status. However, empirical studies find different results and the conclusions are far from a consensus. In this paper, the authors investigate how environment degradation could be considered as a channel through which income distribution affects population health. They first develop a simple theoretical model based on Magnani (2000), in which relative income affects health status through the level of pollution abatement expenditures.

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