Advanced Search
MyIDEAS: Login

Rising Longevity, Human Capital and Fertility in Overlapping Generations Version of an R&D-based Growth Model

Contents:

Author Info

  • Ken-ichi Hashimoto

    ()
    (Graduate School of Economics, Kobe University)

  • Ken Tabata

    ()
    (School of Economics, Kwansei Gakuin University)

Abstract

This paper constructs a simple, overlapping generations version of an R&D-based growth model à la Diamond (1965) and Jones (1995), and examines how an increase in old-age survival probability impacts purposeful R&D investment and long-run growth by affecting fertility and education decisions. We demonstrate that under certain conditions, old-age survival probability, when relatively low (high), positively (negatively) affect economic growth. This study also compares the growth implications of child education subsidies and child rearing subsidies and demonstrates that although child education subsidies always foster economic growth, child rearing subsidies may negatively impact economic growth in particular situations. Finally, we briefly consider the effects of a child education subsidy on welfare levels.

Download Info

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
File URL: http://192.218.163.163/RePEc/pdf/kgdp104.pdf
File Function: First version, 2013
Download Restriction: no

Bibliographic Info

Paper provided by School of Economics, Kwansei Gakuin University in its series Discussion Paper Series with number 104.

as in new window
Length: 46 pages
Date of creation: May 2013
Date of revision: May 2013
Handle: RePEc:kgu:wpaper:104

Contact details of provider:
Postal: 1-155 Uegahara Ichiban-cho, Nishinomiya, Hyogo 662-8501
Phone: +81-(0)798-546496
Fax: +81-(0)798-510944
Web page: http://www-econ.kwansei.ac.jp/~econ/index_e.html
More information through EDIRC

Related research

Keywords: R&D; Fertility; Human Capital; Child Education Subsidy; Child Rearing Subsidy;

Find related papers by JEL classification:

This paper has been announced in the following NEP Reports:

References

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
as in new window
  1. Andreoni, James, 1989. "Giving with Impure Altruism: Applications to Charity and Ricardian Equivalence," Journal of Political Economy, University of Chicago Press, vol. 97(6), pages 1447-58, December.
  2. de la Croix, David & Licandro, Omar, 1999. "Life expectancy and endogenous growth," Economics Letters, Elsevier, vol. 65(2), pages 255-263, November.
  3. Carol Scotese Lehr, 2009. "Evidence on the Demographic Transition," The Review of Economics and Statistics, MIT Press, vol. 91(4), pages 871-887, November.
  4. Holger Strulik & Klaus Prettner & Alexia Prskawetz, 2010. "R&D-Based Growth in the Post-Modern Era," Working Papers 1009, Vienna Institute of Demography (VID) of the Austrian Academy of Sciences in Vienna.
  5. Raouf BOUCEKKINE & David DE LA CROIX & Omar LICANDRO, 2002. "Early Mortality Declines at the Dawn of Modern Growth," Economics Working Papers ECO2002/11, European University Institute.
  6. Kalemli-Ozcan, Sebnem, 2003. "A stochastic model of mortality, fertility, and human capital investment," Journal of Development Economics, Elsevier, vol. 70(1), pages 103-118, February.
  7. Philippe Aghion & Peter Howitt, 1990. "A Model of Growth Through Creative Destruction," NBER Working Papers 3223, National Bureau of Economic Research, Inc.
  8. Klaus Prettner, 2011. "Population aging and endogenous economic growth," PGDA Working Papers 7211, Program on the Global Demography of Aging.
  9. Dalgaard, Carl-Johan & Kreiner, Claus Thustrup, 2001. " Is Declining Productivity Inevitable?," Journal of Economic Growth, Springer, vol. 6(3), pages 187-203, September.
  10. Kalemli-Ozcan, Sebnem, 2002. " Does the Mortality Decline Promote Economic Growth?," Journal of Economic Growth, Springer, vol. 7(4), pages 411-39, December.
  11. Paul M Romer, 1999. "Endogenous Technological Change," Levine's Working Paper Archive 2135, David K. Levine.
  12. Peretto, Pietro F, 1998. " Technological Change and Population Growth," Journal of Economic Growth, Springer, vol. 3(4), pages 283-311, December.
  13. Bruno L. s. Falcão & Rodrigo Reis Soares, 2006. "The Demographic Transition and the Sexual Division of Labor," Textos para discussão 528, Department of Economics PUC-Rio (Brazil).
  14. Kimura, Masako & Yasui, Daishin, 2007. "Occupational choice, educational attainment, and fertility," Economics Letters, Elsevier, vol. 94(2), pages 228-234, February.
  15. Hitoshi Tanaka & Tatsuro Iwaisako, 2009. "Product cycles, endogenous skill acquisition, and wage inequality," Canadian Journal of Economics, Canadian Economics Association, vol. 42(1), pages 300-331, February.
  16. Becker, Sascha O; Cinnirella, Francesco; Woessmann, Ludger, 2011. "Does Parental Education Affect Fertility? Evidence from Pre-Demographic Transition Prussia," CAGE Online Working Paper Series 41, Competitive Advantage in the Global Economy (CAGE).
  17. Strulik, Holger, 2008. "Geography, health, and the pace of demo-economic development," Journal of Development Economics, Elsevier, vol. 86(1), pages 61-75, April.
  18. Frederic Tournemaine & Pongsak Luangaram, 2012. "R&D, human capital, fertility, and growth," Journal of Population Economics, Springer, vol. 25(3), pages 923-953, July.
  19. DE LA CROIX, David & LICANDRO, Omar, 2007. "‘The child is father of the man’: implications for the demographic transition," CORE Discussion Papers 2007072, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
  20. David N. Weil & Oded Galor, 2000. "Population, Technology, and Growth: From Malthusian Stagnation to the Demographic Transition and Beyond," American Economic Review, American Economic Association, vol. 90(4), pages 806-828, September.
  21. Angus Chu & Guido Cozzi & Chih-Hsing Liao, 2013. "Endogenous fertility and human capital in a Schumpeterian growth model," Journal of Population Economics, Springer, vol. 26(1), pages 181-202, January.
  22. Akira Yakita, 2010. "Human capital accumulation, fertility and economic development," Journal of Economics, Springer, vol. 99(2), pages 97-116, March.
  23. Boucekkine, Raouf & de la Croix, David & Licandro, Omar, 2002. "Vintage Human Capital, Demographic Trends, and Endogenous Growth," Journal of Economic Theory, Elsevier, vol. 104(2), pages 340-375, June.
  24. Dierk Herzery & Holger Strulik & Sebastian Vollmer, 2010. "The Long-run Determinants of Fertility: One Century of Demographic Change 1900-1999," PGDA Working Papers 6310, Program on the Global Demography of Aging.
  25. Allen Kelley & Robert Schmidt, 1995. "Aggregate population and economic growth correlations: The role of the components of demographic change," Demography, Springer, vol. 32(4), pages 543-555, November.
  26. Gary S. Becker & Kevin M. Murphy & Robert Tamura, 1994. "Human Capital, Fertility, and Economic Growth," NBER Chapters, in: Human Capital: A Theoretical and Empirical Analysis with Special Reference to Education (3rd Edition), pages 323-350 National Bureau of Economic Research, Inc.
  27. Holger Strulik, 2001. "The Role of Human Capital and Population Growth in R&D-Based Models of Economic Growth," Quantitative Macroeconomics Working Papers 20109, Hamburg University, Department of Economics.
  28. repec:cge:warwcg:41 is not listed on IDEAS
  29. Avner Ahituv, 2001. "Be fruitful or multiply: On the interplay between fertility and economic development," Journal of Population Economics, Springer, vol. 14(1), pages 51-71.
  30. Samuel S. Kortum, 1997. "Research, Patenting, and Technological Change," Econometrica, Econometric Society, vol. 65(6), pages 1389-1420, November.
  31. Connolly, Michelle & Peretto, Pietro F, 2003. " Industry and the Family: Two Engines of Growth," Journal of Economic Growth, Springer, vol. 8(1), pages 115-48, March.
  32. Maria J. Alvarez-Pelaez & Christian Groth, 2002. "Too little or too much R&D?," Discussion Papers 02-01, University of Copenhagen. Department of Economics.
  33. Moshe Hazan, 2009. "Longevity and Lifetime Labor Supply: Evidence and Implications," Econometrica, Econometric Society, vol. 77(6), pages 1829-1863, November.
  34. Kelley, Allen C. & Schmidt, Robert M., 1995. "Aggregate Population and Economic Growth Correlations: The Role of the Components of Demographic Change," Working Papers 95-37, Duke University, Department of Economics.
  35. Strulik, Holger & Prettner, Klaus & Prskawetz, Alexia, 2012. "The past and future of knowledge-based growth," Center for European, Governance and Economic Development Research Discussion Papers 140, University of Goettingen, Department of Economics.
  36. Lucas, Robert Jr., 1988. "On the mechanics of economic development," Journal of Monetary Economics, Elsevier, vol. 22(1), pages 3-42, July.
Full references (including those not matched with items on IDEAS)

Citations

Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
as in new window

Cited by:
  1. Prettner, Klaus & Werner, Katharina, 2014. "Human capital, basic research, and applied research: Three dimensions of human knowledge and their differential growth effects," Center for European, Governance and Economic Development Research Discussion Papers 186, University of Goettingen, Department of Economics.

Lists

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

Statistics

Access and download statistics

Corrections

When requesting a correction, please mention this item's handle: RePEc:kgu:wpaper:104. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Toshihiro Okada).

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.