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Demographic change, human capital accumulation and R&D-based growth

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  • Ken-ichi Hashimoto
  • Ken Tabata

Abstract

Employing an overlapping generations model of R&D-based growth with endogenous fertility and education decisions, we examine how demographic changes induced by an increase in life expectancy influence the long-run growth rate of the economy. We demonstrate that life expectancy, when relatively low (high), positively (negatively) affects economic growth. This paper also compares the growth implications of child education subsidy policies (i.e., policies for enhancing basic education) and child rearing subsidy policies (i.e., pro-natal policies) and demonstrate that while the child education subsidies consistently foster economic growth, child rearing subsidies may negatively affect economic growth.

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  • Ken-ichi Hashimoto & Ken Tabata, 2016. "Demographic change, human capital accumulation and R&D-based growth," Canadian Journal of Economics, Canadian Economics Association, vol. 49(2), pages 707-737, May.
    • Handle: RePEc:cje:issued:v:49:y:2016:i:2:p:707-737
    DOI: 10.1111/caje.12211
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    Cited by:

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    3. Kohei Okada, 2020. "Dynamic analysis of demographic change and human capital accumulation in an R&D-based growth model," Journal of Economics, Springer, vol. 130(3), pages 225-248, August.
    4. Koichi FUTAGAMI & Kunihiko KONISHI, 2017. "Population Dynamics, Longer Life Expectancy, and Child-Rearing Policies in an R&D-based Growth Model with Overlapping Generations," Economic Analysis, Economic and Social Research Institute (ESRI), vol. 193, pages 21-49, March.
    5. Annarita Baldanzi & Klaus Prettner & Paul Tscheuschner, 2019. "Longevity-induced vertical innovation and the tradeoff between life and growth," Journal of Population Economics, Springer;European Society for Population Economics, vol. 32(4), pages 1293-1313, October.
    6. Chu, Angus C. & Kou, Zonglai & Wang, Xilin, 2022. "Culture and stages of economic development," Economics Letters, Elsevier, vol. 210(C).
    7. Miyake, Yusuke, 2022. "Endogenous childcare costs in R&D based model," MPRA Paper 112491, University Library of Munich, Germany.
    8. Chu, Angus C. & Furukawa, Yuichi & Zhu, Dongming, 2016. "Growth and parental preference for education in China," Journal of Macroeconomics, Elsevier, vol. 49(C), pages 192-202.
    9. Kei Takakura, 2020. "Child mortality, child labor, fertility, and demographics," Discussion Papers in Economics and Business 20-13, Osaka University, Graduate School of Economics.
    10. Koichi Futagami & Kunihiko Konishi, 2019. "Rising longevity, fertility dynamics, and R&D-based growth," Journal of Population Economics, Springer;European Society for Population Economics, vol. 32(2), pages 591-620, April.
    11. Kohei Okada, 2019. "Dynamic analysis of demographic change and human capital accumulation in an R&D-based growth model," Discussion Papers in Economics and Business 19-18, Osaka University, Graduate School of Economics.
    12. Swati Saini & Meeta Keswani Mehra, "undated". "Quality of Schooling: Child Quantity-Quality Tradeoff, Technological Progress and Economic Growth," Centre for International Trade and Development, Jawaharlal Nehru University, New Delhi Discussion Papers 18-06, Centre for International Trade and Development, Jawaharlal Nehru University, New Delhi, India.
    13. Kohei Okada, 2020. "Education policy and R&D based growth in an overlapping generations model," Discussion Papers in Economics and Business 20-07, Osaka University, Graduate School of Economics.
    14. Hirazawa, Makoto & Yakita, Akira, 2017. "Labor supply of elderly people, fertility, and economic development," Journal of Macroeconomics, Elsevier, vol. 51(C), pages 75-96.
    15. Luman Zhao & Yabin Zhang & Yuefeng Xie, 2023. "Does the Aging of the Chinese Population Have an Impact on Outward Foreign Direct Investment?," Sustainability, MDPI, vol. 15(18), pages 1-24, September.
    16. Ken Tabata, 2017. "Population Aging, Unfunded Social Security and Economic Growth," Discussion Paper Series 155, School of Economics, Kwansei Gakuin University, revised Jan 2017.
    17. Alberto Bucci & Klaus Prettner, 2020. "Endogenous education and the reversal in the relationship between fertility and economic growth," Journal of Population Economics, Springer;European Society for Population Economics, vol. 33(3), pages 1025-1068, July.
    18. Emerson, Patrick & Knabb, Shawn, 2020. "A demographic headwind: Will an aging society reduce the real interest rate and potential growth?," The Journal of the Economics of Ageing, Elsevier, vol. 17(C).
    19. Miyake, Yusuke, 2022. "Endogenous childcare costs in R&D based model," MPRA Paper 112489, University Library of Munich, Germany.
    20. Bloom, David E. & Kuhn, Michael & Prettner, Klaus, 2023. "Fertility in High-Income Countries: Trends, Patterns, Determinants, and Consequences," IZA Discussion Papers 16500, Institute of Labor Economics (IZA).

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    • J13 - Labor and Demographic Economics - - Demographic Economics - - - Fertility; Family Planning; Child Care; Children; Youth

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