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Endogenous Versus Exogenous Growth Facing a Fertility Shock

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  • Medeiros, João

    (European Commission, Directorate General of Economic and Financial Affairs)

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    Abstract

    This paper simulates the impact of a permanent fertility shock on economic growth, using endogenous versus exogenous growth OLG models. An endogenous growth model, with education as the engine of growth, dampens the negative impact of a decline in fertility on growth when compared with an exogenous growth model. This result stems from the rise in education levels brought about by the expectation of an increase in the discounted value of labour earnings.

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    File URL: http://sites.uclouvain.be/econ/DP/IRES/2000-17.pdf
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    Bibliographic Info

    Paper provided by Université catholique de Louvain, Institut de Recherches Economiques et Sociales (IRES) in its series Discussion Papers (IRES - Institut de Recherches Economiques et Sociales) with number 2000017.

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    Length: 33
    Date of creation: 01 Aug 2000
    Date of revision:
    Handle: RePEc:ctl:louvir:2000017

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    Related research

    Keywords: Human capital; education; fertility; endogenous growth; simulation;

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    1. Gary S. Becker & Kevin M. Murphy & Robert Tamura, . "Human Capital, Fertility, and Economic Growth," University of Chicago - Population Research Center 90-5a, Chicago - Population Research Center.
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    16. Dave Turner & Claude Giorno & Alain de Serres & Ann Vourc'h & Pete Richardson, 1998. "The Macroeconomic Implications of Ageing in a Global Context," OECD Economics Department Working Papers 193, OECD Publishing.
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