After decades of efforts, Taiwan has transformed from a less-developed country to a developing country. The average income per capita also increased to $429,593 NTD in 1993 from $16,401 in 1960. It is an increase of as much as 26 times, especially between 1960 and 1980 where the government created the economic miracle by promoting a series of construction such as the Ten Major Construction Projects and reform such as the establishment of export processing zone and the promotion of labor-intensive industries to revive the economy after the oil crisis in the 1960s, and reduce unemployment rate. According to the Ministry of the Interior’s statistics, the population of 65 years and older people in the cities and counties has shown an upward trend in the 29 years from 1976 to 1993, especially in the last ten years. In other words, the majority of the labor force will be largely concentrated in urban areas while the elderly without productivity remain in the rural areas in the future. As a result of the reduction of disposable income and aging population in the countryside, elderly care expenses and medical expenses will increase, widening the average income and health gaps between urban and rural residents. Whether it is in uneven degree of income inequality, or the health of residents, both will make the overall allocation of national resources uneven or inefficient, resulting in the decline in the health standards of the country as a whole or the phenomenon of increased mortality, while the economy of the country as a whole will be adversely affected.
II. Hypothesis and Data
After three decades of vigorous economic development, the levels of the national income and national health have improved in Taiwan. It is highly likely that the level of national income may affect national health and the supply of medical services. If the national mortality rate is used as the health measurement indicator, I estimate the higher level of national income will decrease mortality rate. This term paper utilizes "Demographics of Republic of China," and “Statistical Abstract of National Income1951-2004" to construct the panel data of mortality rates and national income per capita of Taiwan through the time series model to analyze the impact of national income on health. These two data are sufficient to represent the population structure and life expectancy of the counties and cities in Taiwan, family income, and consumer behavior. Since 1964, “Statistical Abstract of National Income1951-2004" uses household and individual as statistical units for counties’ household registration data. It uses a fixed rate of 1.3 per thousand to 4 per thousand or a certain number of households of 13,681 or 16,434 households for the investigators to interview and stage random stratified sampling method to the proportion of the labor force and industrial structure according to cities, towns and villages. The first stage’s sampling unit is village while the second stage’s sampling unit is household. The survey includes household composition, equipment, residential profile, and balance of payments and consumer spending, in order to calculate household population, adult population, household income, average household disposable income, consumption and savings. In addition, this term paper utilizes information such as population age group, marital status and education level from "Demographics of Republic of China" to calculate different counties’ population and the population of different age groups to the total population ratio. However, Taiwan only started implementing Child Welfare Act in February 1993 and requiring “within ten days after birth of the children, the relevant information should be reported to local household registration offices and health bureaus.” Moreover, the government authority only began to use the birth notification system in October 1994. As a result, the infant...