Life expectancy and endogenous growth

Croix, David de la; Licandro, Omar

doi:10.1016/s0165-1765(99)00139-1

Cited by 202 publications

(112 citation statements)

References 9 publications

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“…Recent theoretical studies have investigated the effect of life expectancy (or mortality) on capital accumulation and growth. See, for example, Skinner (1985), Ehrlich and Lui (1991) and de la Croix, and Licandro (1999).…”

Section: Introductionmentioning

confidence: 99%

Effects of longevity and dependency rates on saving and growth: Evidence from a panel of cross countries

Zhang

2007

Journal of Development Economics

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While earlier empirical studies found a negative saving effect of old-age dependency rates without considering longevity, recent studies have found that longevity has a positive effect on growth without considering old-age dependency rates. In this paper, we first justify the related yet independent roles of longevity and old-age dependency rates in determining saving and growth by using a growth model that encompasses both neoclassical and endogenous growth models as special cases. Using panel data from a recent World Bank data set, we then find that the longevity effect is positive and the dependency effect is negative in savings and investment regressions. The estimates indicate that the differences in the demographic variables across countries or over time can well explain the differences in aggregate savings rates. We also find that both population age structure and life expectancy are important contributing factors to growth.JEL classification: E21; J10; O16

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Section: Introductionmentioning

confidence: 99%

Effects of longevity and dependency rates on saving and growth: Evidence from a panel of cross countries

Zhang

2007

Journal of Development Economics

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“…Our findings may also be compared with the theoretical literature on why lower mortality contributes to economic growth (Ehrlich and Lui, 1991;De La Croix and Licandro, 1999;Kalemli-Ozcan, Ryder et al, 2000;Blackburn and Cipriani, 2002;Boucekkine, De La Croix et al, 2002;Kalemli-Ozcan, 2002;Bloom, Canning et al, 2003;Kalemli-Ozcan, 2003;Lagerlof, 2003). Two mechanisms have been explored.…”

Section: Comparison With Earlier Research!mentioning

confidence: 80%

Links between Ill Health and Regional Economic Performance: Evidence from Swedish Longitudinal Data

2010

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Townsend et al, 1982). While the question of causal direction in the association between health and economic outcomes remains (Deaton, 2002;Marmot, 2002), it is clear that the association is most likely to be reciprocal and that the direction of the relationship is likely to be contingent on the life stage of the individual. For instance, poor parents will be less able than rich parents to give their children an upbringing that ensures them good health and a competitive education (Smith, 1999), whereas ill health in adulthood can deprive working adults of income, and thereby reduce their wealth.In this study we examine the association between health and economic performance in Sweden, with`health' defined simply as the`absence of sickness'. Specifically, we use an extensive longitudinal individual-level database to explore how ill health affects local economies via effects on individuals, families, and businesses.The empirical analysis is carried out in three steps, beginning with an analysis of the individual-level economic effects of sickness. The aim of this analysis was to establish whether a decline in health has severe individual-level economic effects with potential for macrolevel repercussions. The second step was to analyze if a severe illness also has economic and social effects on other family members. With this analysis we aim to show that both social and human capital explanations are needed to give a full account of the interaction between health events and social or economic outcomes. The third step was to analyze the extent to which a severe case of illness also

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“…Theoretical work dealing with the ageing-education nexus by Boucekkine et al (2002), de la Croix and Licandro (1999), Echevarria and Iza (2006) and Heijdra and Romp (2008) use variations of a Blanchard (1985) type of perpetual youth setup. By employing this model family the authors obtain closed form solutions and derive a number of insights by relying entirely on analytical results.…”

Section: Introductionmentioning

confidence: 99%

Mortality, fertility, education and capital accumulation in a simple OLG economy

Ludwig

Vögel

2009

J Popul Econ

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We develop a simple overlapping generations model to analytically show that population aging leads to increased educational efforts through a general equilibrium effect. The key mechanism at work in the model is that scarcity of raw labor increases the rate of return to human capital relative to physical capital. While a reduction in the birth rate is shown to unambiguously increase educational efforts, increases in the survival rate have ambiguous effects. Falling birth rates unambiguously increase capital per worker while the effects of rising survival rates are ambiguous. When evaluating our model using a calibrated version we find that education always increases if life expectancy rises but the effect on the capital stock is still ambiguous and depends on the parameters of the model. We conclude that our model is a useful laboratory to highlight the various potentially offsetting effects at work in models with endogenous education and overlapping generations which is key for understanding the magnitudes of results of applied quantitative general equilibrium analyses employing such a framework. JEL classification: I12, I20, J11, J24, O11

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Life expectancy and endogenous growth

Cited by 202 publications

References 9 publications

Effects of longevity and dependency rates on saving and growth: Evidence from a panel of cross countries

Effects of longevity and dependency rates on saving and growth: Evidence from a panel of cross countries

Links between Ill Health and Regional Economic Performance: Evidence from Swedish Longitudinal Data

Mortality, fertility, education and capital accumulation in a simple OLG economy

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