Endogenous mortality, human capital and economic growth
Data(s) |
2008
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Resumo |
We consider growth and welfare effects of lifetime-uncertainty in an economy with human capital-led endogenous growth. We argue that lifetime uncertainty reduces private incentives to invest in both physical and human capital. Using an overlapping generations framework with finite-lived households we analyze the relevance of government expenditure on health and education to counter such growth-reducing forces. We focus on three different models that differ with respect to the mode of financing of education: (i) both private and public spending, (ii) only public spending, and (iii) only private spending. Results show that models (i) and (iii) outperform model (ii) with respect to long-term growth rates of per capita income, welfare levels and other important macroeconomic indicators. Theoretical predictions of model rankings for these macroeconomic indicators are also supported by observed stylized facts. |
Identificador | |
Publicador |
Elsevier BV |
Relação |
DOI:10.1016/j.jmacro.2007.09.002 Osang, Thomas & Sarkar, Jayanta (2008) Endogenous mortality, human capital and economic growth. Journal of Macroeconomics, 30(4), pp. 1423-1445. |
Direitos |
Copyright 2007 Elsevier Inc. |
Fonte |
QUT Business School; School of Economics & Finance |
Palavras-Chave | #140100 Economic Theory #Health, Life expectancy, Human capital, Public spending, Endogenous growth |
Tipo |
Journal Article |