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Transitional Dynamics with Human Capital Accumulation and Mortality Decline

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  • Kosempel, S.

    (Department of Economics and Finance, University of Guelph)

Abstract

In the empirical growth literature the level of life expectancy was found to have a positive and statistically significant impact on the rate of economic growth. However, mortality decline exhibits a weakly negative and statistically insignificant relationship with economic growth. Combined these facts reveal that it is the level of life expectancy, not changes in life expectancy, that affect economic growth. This paper presents a theoretical growth model; which, when calibrated to the data, is consistent with these facts. The model is also used to quantify the contribution of life expectancy to the growth rate of income per person.

Suggested Citation

  • Kosempel, S., 2003. "Transitional Dynamics with Human Capital Accumulation and Mortality Decline," Working Papers 2003-12, University of Guelph, Department of Economics and Finance.
    • Handle: RePEc:gue:guelph:2003-12
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