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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. 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.
  2. Shu-Chin Lin & Ho-Chuan Huang & Dong-Hyeon Kim & Chih-Chuan Yeh, 2009. "Nonlinearity between Inequality and Growth," Studies in Nonlinear Dynamics & Econometrics, De Gruyter, vol. 13(2), pages 3.
  3. 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.
  4. Hung-Ju Chen, 2010. "Life expectancy, fertility, and educational investment," Journal of Population Economics, Springer, vol. 23(1), pages 37-56, January.
  5. 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.

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