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Population Dynamics, Longer Life Expectancy, and Child-Rearing Policies in an R&D-based Growth Model with Overlapping Generations

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  • Koichi FUTAGAMI
  • Kunihiko KONISHI

Abstract

This study constructs an overlapping generations model with R&D activities and endogenous fertility. We demonstrate that there is a trap region where the economy cannot achieve sustainable growth. Moreover, this study shows that an increase in life expectancy expands the region where R&D is conducted, but shrinks the region where population increases. We consider the effects of child-rearing policies to expand the region where population increases. We show that these policies have the opposite effect of increasing life expectancy if the tax burden effect is small. However, a strengthening of child-rearing policies can reduce both regions where R&D is conducted and where population increases if the tax burden effect is large. JEL Codes：J13, O30, O41 Keywords：R&D, Fertility, Increasing life expectancy, Child-rearing policies

Suggested Citation

  • 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.
    • Handle: RePEc:esj:esriea:193c
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    References listed on IDEAS

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    More about this item

    JEL classification:

    • J13 - Labor and Demographic Economics - - Demographic Economics - - - Fertility; Family Planning; Child Care; Children; Youth
    • O30 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - General
    • O41 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - One, Two, and Multisector Growth Models

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