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A two-sector overlapping generations economy: economic growth and multiple equilibria

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  • Luciano Fanti
  • Luca Gori

Abstract

We study an overlapping generations economy with two sectors of production, the commodities sector and the services sector and public health investments that affect the lifetime of people (as in Chakraborty, 2004). It is shown a reallocation of labour towards the services sector increases capital accumulation and longevity, thus allowing those economies that, for some exogenous reasons, were entrapped into poverty to prosper.

Suggested Citation

  • Luciano Fanti & Luca Gori, 2010. "A two-sector overlapping generations economy: economic growth and multiple equilibria," Discussion Papers 2010/100, Dipartimento di Economia e Management (DEM), University of Pisa, Pisa, Italy.
    • Handle: RePEc:pie:dsedps:2010/100
    Note: ISSN 2039-1854
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    File URL: https://www.ec.unipi.it/documents/Ricerca/papers/2010-100.pdf
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    References listed on IDEAS

    as
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    Full references (including those not matched with items on IDEAS)

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    More about this item

    JEL classification:

    • I18 - Health, Education, and Welfare - - Health - - - Government Policy; Regulation; Public Health
    • O41 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - One, Two, and Multisector Growth Models

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