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Growth and inequality: a demographicexplanation

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  • Kazutoshi Miyazawa
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    Abstract

    Abstract This paper investigates the relationship between growth and inequality froma demographic point of view. In an extended model of the accidental bequest withendogenous fertility, we analyze the effects of a decrease in old-age mortality rate onthe equilibrium growth rate as well as on the income distribution. We show that therelationship between growth and inequality is at first positive and then may benegative in the process of population aging. The results are consistent with theempirical evidence in some developed countries.

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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 87.

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    Date of creation: Dec 2006
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    Handle: RePEc:cep:stidar:87

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

    Related research

    Keywords: Inequality; Growth; Fertility; Accidental bequest.;

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    Cited by:
    1. Hung-Ju Chen, 2010. "Life expectancy, fertility, and educational investment," Journal of Population Economics, Springer, vol. 23(1), pages 37-56, January.
    2. Maksim Yemelyanau, 2009. "Inequality in Belarus from 1995 to 2007," BEROC Working Paper Series 01, Belarusian Economic Research and Outreach Center (BEROC).
    3. Klaus Prettner, 2011. "Population aging and endogenous economic growth," PGDA Working Papers 7211, Program on the Global Demography of Aging.
    4. 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.
    5. 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.
    6. 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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