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This paper investigates the causal effect of improvements in health on economic development using a long panel of European countries. Identification is based on the particular timing of the introduction of public health care systems in different countries, which is the random outcome of a political process. We document that the introduction of public health care systems had a significant immediate effect on health dynamics proxied by infant mortality and crude death rates. The findings suggest that health improvements had a positive effect on growth in income per capita and aggregate income. [ABSTRACT FROM AUTHOR]