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Growth and Inequality: A Demographic Explanation

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  • Kazutoshi Miyazawa

Abstract

This paper investigates the relationship between growth and inequality from a demographicpoint of view. In an extended model of the accidental bequest with endogenous fertility, weanalyze the effects of a decrease in the old-age mortality rate on the equilibrium growth rateas well as on the income distribution. We show that the relationship between growth andinequality is at first positive and then may be negative in the process of population aging. Theresults are consistent with the empirical evidence in some developed countries.

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File URL: http://sticerd.lse.ac.uk/dps/DARP/darp75.pdf
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Bibliographic Info

Paper provided by Suntory and Toyota International Centres for Economics and Related Disciplines, LSE in its series STICERD - Distributional Analysis Research Programme Papers with number 75.

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Date of creation: Jul 2005
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Handle: RePEc:cep:stidar:75

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Web page: http://sticerd.lse.ac.uk/_new/publications/default.asp

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Keywords: Inequality; Growth; Fertility; Accidental bequest;

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Citations

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Cited by:
  1. Klaus Prettner, 2011. "Population aging and endogenous economic growth," PGDA Working Papers 7211, Program on the Global Demography of Aging.
  2. Hung-Ju Chen, 2010. "Life expectancy, fertility, and educational investment," Journal of Population Economics, Springer, vol. 23(1), pages 37-56, January.
  3. Akira Yakita, 2012. "Different demographic changes and patterns of trade in a Heckscher–Ohlin setting," Journal of Population Economics, Springer, vol. 25(3), pages 853-870, July.
  4. Lin Shu-Chin & Huang Ho-Chuan & Kim Dong-Hyeon & Yeh Chih-Chuan, 2009. "Nonlinearity between Inequality and Growth," Studies in Nonlinear Dynamics & Econometrics, De Gruyter, vol. 13(2), pages 1-20, May.
  5. Maksim Yemelyanau, 2008. "Inequality in Belarus from 1995 to 2005," CERGE-EI Working Papers wp356, The Center for Economic Research and Graduate Education - Economic Institute, Prague.
  6. Wang, Xinxin & Chen, Kevin & Huang, Zuhui, 2013. "The Impact of China's Demographic Transition on Economic Growth and Income Distribution: CGE Modeling with Top-Down Micro-Simulation," 2013 Annual Meeting, August 4-6, 2013, Washington, D.C. 151276, Agricultural and Applied Economics Association.
  7. Maksim Yemelyanau, 2009. "Inequality in Belarus from 1995 to 2007," BEROC Working Paper Series 01, Belarusian Economic Research and Outreach Center (BEROC).
  8. Ito, Hiroyuki & Tabata, Ken, 2008. "Demographic structure and growth: The effect of unfunded social security," Economics Letters, Elsevier, vol. 100(2), pages 288-291, August.
  9. Čobanović, Katarina & Nikolić-Đorić, Emilija & Mutavdžić, Beba, 2007. "Relation of Socio-Economic and Demographic Factors in Rural Development of Serbia," 100th Seminar, June 21-23, 2007, Novi Sad, Serbia and Montenegro 162339, European Association of Agricultural Economists.

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