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Economics Research International
Volume 2013 (2013), Article ID 409738, 11 pages
http://dx.doi.org/10.1155/2013/409738
Research Article

The Short-Run and Long-Run Relationships between Mortality and the Business Cycle in Canada

1Department of Economics, San Francisco State University, 1600 Holloway Avenue, San Francisco, CA 94132, USA
2Department of Economics, University of Calgary, 2500 University Drive NW, Calgary, AB, Canada T2N 1N4

Received 20 April 2013; Accepted 5 June 2013

Academic Editor: Colin C. Williams

Copyright © 2013 Zuzana Janko et al. This is an open access article distributed under the Creative Commons Attribution License, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.

Abstract

This paper investigates the relationship between health and the business cycle for the Canadian economy. The majority of existing literature shows a procyclical relationship between death rates and indicators of the business cycle, suggesting that recessions are good for one’s health. We use a time series error correction model to determine the short-run and long-run impacts of the unemployment rates on death rates. Our results indicate that temporary slowdowns in economic activity are associated with lower death rates. Moreover, once we stratify the data by sex, we find a long-run negative relationship between the unemployment rate and death rates for both sexes.