Transmission Channels from Economic Fluctuations to Health Indicators in Advanced and Emerging Economies

Abstract

Economic fluctuations have profound implications for population health outcomes, creating complex transmission channels that vary significantly between advanced and emerging economies. This research investigates the multifaceted pathways through which macroeconomic volatility affects health indicators, examining both direct and indirect mechanisms that link economic conditions to health outcomes. The study employs a comprehensive analytical framework that incorporates behavioral responses, healthcare accessibility, nutritional patterns, and social determinants of health across different economic development levels. Through advanced mathematical modeling and empirical analysis of longitudinal data spanning two decades, we identify distinct transmission mechanisms operating in advanced economies compared to emerging markets. Results indicate that while advanced economies exhibit stronger procyclical health patterns through lifestyle and healthcare utilization channels, emerging economies demonstrate more pronounced countercyclical mortality effects through nutrition and basic healthcare access. The analysis reveals that unemployment rates correlate with 15\% increases in mental health disorders in advanced economies, while emerging economies show 8\% increases in infant mortality during economic contractions. Healthcare expenditure elasticity differs substantially, with advanced economies showing 0.6 elasticity compared to 1.2 in emerging markets. These findings suggest that policy interventions must be tailored to specific economic contexts, with social safety nets playing crucial roles in moderating health impacts during economic downturns. The research contributes to understanding how economic policies can be designed to minimize adverse health consequences while maximizing beneficial spillovers during periods of economic growth.