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Dynamic analysis of demographic change and human capital accumulation in an R&D-based growth model

Author

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  • Kohei Okada

    (Graduate School of Economics, Osaka University,)

Abstract

Employing an overlapping-generations model of R&D-based growth with endogenous fertil- ity, mortality, and education choice, we examine how demographic changes and human capital accumulation influence R&D activity. We show that multiple steady states can exist in this economy. One steady state has a high level of human capital and the other has a low level. In the steady state with high (low) level of human capital, there is a high (low) level of R&D activity, a low (high) fertility rate, and a high (low) old-age survival rate. In addition, we show that the government can steer an economy away from a poverty trap trajectory by investing in public health. We also show that an improvement in the government's public health policy has an inverted U-shaped effect on the growth rate at the steady state.

Suggested Citation

  • Kohei Okada, 2019. "Dynamic analysis of demographic change and human capital accumulation in an R&D-based growth model," Discussion Papers in Economics and Business 19-18, Osaka University, Graduate School of Economics.
    • Handle: RePEc:osk:wpaper:1918
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    File URL: http://www2.econ.osaka-u.ac.jp/econ_society/dp/1918.pdf
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    References listed on IDEAS

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    1. Kawalec Paweł, 2020. "The dynamics of theories of economic growth: An impact of Unified Growth Theory," Economics and Business Review, Sciendo, vol. 6(2), pages 19-44, June.

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    More about this item

    Keywords

    Demographic change; Human capital accumulation; R&D;
    All these keywords.

    JEL classification:

    • I25 - Health, Education, and Welfare - - Education - - - Education and Economic Development
    • J10 - Labor and Demographic Economics - - Demographic Economics - - - General
    • O10 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - General
    • O30 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - General

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