SOCIAL MEDICAL INSURANCE AND ECONOMIC GROWTH

This paper analyzes the social medical insurance's impact on economic growth from the perspective of physical capital and human capital. Combined with unique account of the social medical insurance model, this paper established a representative individual model to discuss the relationship between social medical insurance relationship and economic growth. Our study found that the contribution rate of personal account will produce multiplier effect on economic growth, but the contribution rate of pooling account depends on parameters in the model. The results of numerical simulation show that the higher rate of economic growth is with the lower rate of pooling account payment and the higher rate of personal account payment. We also find that the proportion of employment payment transferring to personal account is relevant to economic growth. The empirical results also verify the positive impact of social medical insurance on economic growth. The results of theoretical model, numerical simulation and empirical analysis provide a theoretical basis for speeding up the reform of the basic medical insurance system in china.