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Endogenous Longevity and Economic Growth

Author

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  • Jocelyn E. Finlay

    (PGDA, Harvard School of Public Health)

Abstract

In a two period overlapping generations model of endogenous longevity and economic growth, individuals choose to invest in health and education. The investments are costly in terms of foregone first period consumption and the benefit is in the second period where health has the effect of increasing the probability of survival, and education investment will bring higher income. These investments are risky as survival through period two, when the payoffs can be had, is not certain. Individuals with varying degrees of risk aversion will choose the ordering in which they invest in health and education. It is only when investment in education is achieved that an economy will experience endogenous growth.

Suggested Citation

  • Jocelyn E. Finlay, 2006. "Endogenous Longevity and Economic Growth," PGDA Working Papers 0706, Program on the Global Demography of Aging.
    • Handle: RePEc:gdm:wpaper:0706
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    File URL: http://www.hsph.harvard.edu/pgda/WorkingPapers/2006/FinlayWP7.2006.pdf
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    References listed on IDEAS

    as
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    Cited by:

    1. Boucekkine, Raouf & Laffargue, Jean-Pierre, 2010. "On the distributional consequences of epidemics," Journal of Economic Dynamics and Control, Elsevier, vol. 34(2), pages 231-245, February.
    2. Bhattacharya, Joydeep & Qiao, Xue, 2005. "Public and Private Expenditures on Health in a Growth Model," Staff General Research Papers Archive 12378, Iowa State University, Department of Economics.
    3. Gilad Sorek, 2006. "Advancing Medical Technology, Aging Population, and Economic Growth," DEGIT Conference Papers c011_046, DEGIT, Dynamics, Economic Growth, and International Trade.
    4. Carlotta Balestra & Davide Dottori, 2012. "Aging society, health and the environment," Journal of Population Economics, Springer;European Society for Population Economics, vol. 25(3), pages 1045-1076, July.
    5. Rangan Gupta & Cobus Vermeulen, 2010. "Private and Public Health Expenditures in an Endogenous Growth Model with Inflation Targeting," Annals of Economics and Finance, Society for AEF, vol. 11(1), pages 139-153, May.
    6. Pierre Pestieau & Gregory Ponthiere, 2012. "The Public Economics of Increasing Longevity," Hacienda Pública Española / Review of Public Economics, IEF, vol. 200(1), pages 41-74, March.
    7. , "undated". "No Longer Available," PGDA Working Papers 2107, Program on the Global Demography of Aging.
    8. Gregory Ponthiere, 2006. "Growth, Longevity and Public Policy," CESifo Working Paper Series 1780, CESifo.
    9. Pierre-Richard Agénor, 2015. "Public capital, health persistence and poverty traps," Journal of Economics, Springer, vol. 115(2), pages 103-131, June.
    10. Basseti, Thomas & Benos, Nikos & Karagiannis, Stelios, 2010. "How policy can influence human capital accumulation and environment quality," MPRA Paper 21754, University Library of Munich, Germany.
    11. Pierre-Richard Agénor & Madina Agénor, 2014. "Infrastructure, women’s time allocation, and economic development," Journal of Economics, Springer, vol. 113(1), pages 1-30, September.

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    Keywords

    Endogenous Longevity; Endogenous Growth; Health; Risk;
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