Advanced Search
MyIDEAS: Login

Endogenous lifetime in an overlapping generations small open economy

Contents:

Author Info

  • Luciano Fanti
  • Luca Gori

Abstract

Using a simple overlapping generations small open economy, we show that endogenous longevity – through public health expenditure – may reduce both the saving rate and per capita domestic income, while increasing the per capita foreign debt in a country. Moreover, despite funding public health capital is always beneficial for life expectancy, it may or may not represent a Pareto improvement with respect to the laissez-faire solution depending on whether the world interest rate is high or low enough, respectively.

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://www.dse.ec.unipi.it/fileadmin/pdf/2009-92.pdf
Download Restriction: no

Bibliographic Info

Paper provided by Dipartimento di Economia e Management (DEM), University of Pisa, Pisa, Italy in its series Discussion Papers with number 2009/92.

as in new window
Length:
Date of creation: 15 Oct 2009
Date of revision:
Handle: RePEc:pie:dsedps:2009/92

Contact details of provider:
Postal: Via Cosimo Ridolfi, 10 - 56124 PISA
Phone: +39 050 22 16 466
Fax: +39 050 22 16 384
Web page: http://www.dse.ec.unipi.it
More information through EDIRC

Related research

Keywords: Health; Life expectancy; OLG model; Small open economy.;

Other versions of this item:

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. Alga Foschi, 2005. "Lo shipping, la cantieristica ed i porti nellindustria marittima," Discussion Papers 2005/53, Dipartimento di Economia e Management (DEM), University of Pisa, Pisa, Italy.
  2. Luciano Fanti & Luca Gori, 2009. "On economic growth and minimum wages," Discussion Papers 2009/78, Dipartimento di Economia e Management (DEM), University of Pisa, Pisa, Italy.
  3. Andrea Mario Lavezzi - Nicola Meccheri, 2009. "Transitions Out of Unemployment: the Role of Social Networks' Topology and Firms' recruitment Strategies," Discussion Papers 2009/80, Dipartimento di Economia e Management (DEM), University of Pisa, Pisa, Italy.
  4. Fabrizio Bulckaen and Marco Stampini, 2006. "Commodity Tax Reforms In A Many Consumers Economy: A Viable Decision-Making Procedure," Taxation eJournal of Tax Research , ATAX, University of New South Wales.
  5. Davide Fiaschi & Andrea Mario Lavezzi, 2003. "Nonlinear Economic Growth: Some Theory and Cross-Country Evidence," Discussion Papers 2003/14, Dipartimento di Economia e Management (DEM), University of Pisa, Pisa, Italy.
  6. Mario Morroni, 2006. "Innovative activity, substantive uncertainty and the theory of the firm," ECONOMIA E POLITICA INDUSTRIALE, FrancoAngeli Editore, vol. 2006(3), pages 47-75.
  7. Luciano fanti & Luca Spataro, 2004. "Welfare implications of national debt in a OLG model with endogenous fertility," Discussion Papers 2004/35, Dipartimento di Economia e Management (DEM), University of Pisa, Pisa, Italy.
  8. Luciano Fanti & Luca Spataro, 2008. "Poverty traps and intergenerational transfers," International Tax and Public Finance, Springer, vol. 15(6), pages 693-711, December.
  9. Luciano fanti & Luca Spataro, 2004. "Dynamic inefficiency, public debt and endogenous fertility," Discussion Papers 2004/38, Dipartimento di Economia e Management (DEM), University of Pisa, Pisa, Italy.
  10. Nicola Meccheri, 2007. "Wage behaviour and unemployment in Keynes' and New Keynesians' views: A comparison," The European Journal of the History of Economic Thought, Taylor & Francis Journals, vol. 14(4), pages 701-724.
  11. Lorenzo Corsini & Elisabetta Olivieri, 2008. "Technological Change and the Wage Differential between Skilled and Unskilled Workers: Evidence from Italy," Discussion Papers 2008/73, Dipartimento di Economia e Management (DEM), University of Pisa, Pisa, Italy.
  12. Alga Foschi, 2004. "A cost-transit time choice model: monomodality vs. intermodality," Discussion Papers 2004/47, Dipartimento di Economia e Management (DEM), University of Pisa, Pisa, Italy.
  13. Luciano Fanti & Luca Spataro, 2004. "Endogenous labor supply and Diamond's (1965) model: a reconsideration of the debt role," Discussion Papers 2003/22, Dipartimento di Economia e Management (DEM), University of Pisa, Pisa, Italy.
  14. Manuela Gussoni - Andrea Mangani, 2009. "The impact of public funding for innovation on firms' R&D investments: Do R&D cooperation and appropriability matter?," Discussion Papers 2009/90, Dipartimento di Economia e Management (DEM), University of Pisa, Pisa, Italy.
  15. Luciano fanti, 2004. "Neo-classical labour market dynamics and uniform expectations: chaos and the resurrection of the Phillips Curve," Discussion Papers 2004/34, Dipartimento di Economia e Management (DEM), University of Pisa, Pisa, Italy.
  16. Davide Fiaschi, 2003. "Fiscal policy and welfare in an endogenous growth model with heterogeneous endowments," Discussion Papers 2003/18, Dipartimento di Economia e Management (DEM), University of Pisa, Pisa, Italy.
  17. Fanti, Luciano & Gori, Luca, 2010. "Child policy solutions for the unemployment problem," Economics Letters, Elsevier, vol. 109(3), pages 147-149, December.
  18. Giuseppe Freni & Fausto Gozzi & Neri Salvadori, 2006. "Existence of optimal strategies in linear multisector models," Economic Theory, Springer, vol. 29(1), pages 25-48, September.
  19. Luciano Fanti & Luca Gori, 2007. "Economic Growth and Welfare in a Simple Neoclassical OLG Model with Minimum Wage and Consumption Taxes support," Discussion Papers 2007/68, Dipartimento di Economia e Management (DEM), University of Pisa, Pisa, Italy.
  20. Luciano Fanti & Luca Gori, 2008. "‘Backyard’ technology and regulated wages in a neoclassical OLG growth model," Discussion Papers 2008/74, Dipartimento di Economia e Management (DEM), University of Pisa, Pisa, Italy.
  21. Luca Gori, 2009. "Endogenous fertility, family policy and multiple equilibria," Discussion Papers 2009/79, Dipartimento di Economia e Management (DEM), University of Pisa, Pisa, Italy.
  22. Davide Fiaschi - Matteo Marsili, 2009. "Distribution of Wealth and Incomplete Markets: Theory and Empirical Evidence," Discussion Papers 2009/83, Dipartimento di Economia e Management (DEM), University of Pisa, Pisa, Italy.
  23. Luca Spataro & Luciano Fanti, 2011. "The Optimal Level of Debt in an OLG Model with Endogenous Fertility," German Economic Review, Verein für Socialpolitik, vol. 12(3), pages 351-369, 08.
  24. Alga D. Foschi & Xavier Peraldi & Michel Rombaldi, 2005. "Inter-island Links in Mediterranean Short Sea Shipping Networks," Discussion Papers 2005/52, Dipartimento di Economia e Management (DEM), University of Pisa, Pisa, Italy.
  25. Meccheri, Nicola, 2009. "A note on noncompetes, bargaining and training by firms," Economics Letters, Elsevier, vol. 102(3), pages 198-200, March.
  26. Andrea Mario Lavezzi, 2003. "Complex Dyanmics in a Simple Model of Economic Specialization," Computing in Economics and Finance 2003 170, Society for Computational Economics.
  27. de la Grandville,Olivier, 2009. "Economic Growth," Cambridge Books, Cambridge University Press, number 9780521898010, November.
  28. Davide Fiaschi, Andrea Mario Lavezzi and Angela Parenti, 2009. "Productivity Dynamics across European Regions: the Impact of Structural and Cohesion Funds," Discussion Papers 2009/84, Dipartimento di Economia e Management (DEM), University of Pisa, Pisa, Italy.
  29. Manfredi, Piero & Fanti, Luciano, 2004. "Cycles in dynamic economic modelling," Economic Modelling, Elsevier, vol. 21(3), pages 573-594, May.
  30. Davide Fiaschi, 2009. "Natural Resources, Social Conflict and Poverty Trap," Discussion Papers 2009/82, Dipartimento di Economia e Management (DEM), University of Pisa, Pisa, Italy.
  31. Carlo Brambilla & Giandomenico Piluso, 2008. "Italian investment and merchant banking up to 1914: Hybridising international models and practices," Discussion Papers 2008/7, Dipartimento di Economia e Management (DEM), University of Pisa, Pisa, Italy.
  32. Luciano Fanti & Piero Manfredi, 2003. "Progressive Income Taxation and Economic Cycles: a Multiplier-Accelerator Model," Discussion Papers 2003/11, Dipartimento di Economia e Management (DEM), University of Pisa, Pisa, Italy.
  33. Davide Fiaschi & Andrea Mario Lavezzi, . "On the Determinants of Growth Volatility: a Nonparametric Approach," Discussion Papers 2003/25, Dipartimento di Economia e Management (DEM), University of Pisa, Pisa, Italy.
  34. Luciano Fanti & Luca Gori, 2009. "Longevity, fertility and PAYG pension systems sustainability," Discussion Papers 2009/77, Dipartimento di Economia e Management (DEM), University of Pisa, Pisa, Italy.
  35. Luciano Fanti & Luca Gori, 2008. "Neoclassical Economic Growth and Lifetime Welfare in a Simple OLG Model with Unions," Discussion Papers 2008/71, Dipartimento di Economia e Management (DEM), University of Pisa, Pisa, Italy.
  36. de la Grandville,Olivier, 2009. "Economic Growth," Cambridge Books, Cambridge University Press, number 9780521725200, November.
  37. Alga D. Foschi, 2006. "La concentrazione industriale per i sistemi di trasporto sostenibile," Discussion Papers 2006/64, Dipartimento di Economia e Management (DEM), University of Pisa, Pisa, Italy.
  38. Akos Dombi, 2006. "Scale Effects in Idea-Based Growth Models: a Critical Survey," Discussion Papers 2006/60, Dipartimento di Economia e Management (DEM), University of Pisa, Pisa, Italy.
  39. Fanti, Luciano & Gori, Luca, 2010. "PAYG pensions and economic cycles," MPRA Paper 19984, University Library of Munich, Germany.
  40. Alga Foschi, 2004. "The coast port industry in the USA: a key factor in the process of economic growth," Discussion Papers 2004/46, Dipartimento di Economia e Management (DEM), University of Pisa, Pisa, Italy.
  41. Luciano Fanti & Luca Gori, 2009. "Endogenous fertility, endogenous lifetime and economic growth: the role of health and child policies," Discussion Papers 2009/91, Dipartimento di Economia e Management (DEM), University of Pisa, Pisa, Italy.
  42. Luciano Fanti & Luca Gori, 2008. "Fertility and regulated wages in an OLG model of neoclassical growth: Pensions and old age support," Discussion Papers 2008/70, Dipartimento di Economia e Management (DEM), University of Pisa, Pisa, Italy.
  43. Luca Spataro, . "Social Security And Retirement Decisions In Italy," Discussion Papers 2003/1, Dipartimento di Economia e Management (DEM), University of Pisa, Pisa, Italy.
  44. Luciano Fanti, 2003. "The growth cycle and labour contract length," Discussion Papers 2003/17, Dipartimento di Economia e Management (DEM), University of Pisa, Pisa, Italy.
  45. Lorenzo Corsini, 2006. "Firms' Entry, Imperfect Competition and Regulation," Discussion Papers 2006/57, Dipartimento di Economia e Management (DEM), University of Pisa, Pisa, Italy.
  46. Alga Foschi, 2004. "Politiques communautaires de soutien au short sea shipping (SSS)," Discussion Papers 2004/48, Dipartimento di Economia e Management (DEM), University of Pisa, Pisa, Italy.
  47. Floridi M., Pagni S., Falorni S. e Luzzati T., 2009. "Una valutazione di sostenibilità delle Regioni Italiane," Discussion Papers 2009/88, Dipartimento di Economia e Management (DEM), University of Pisa, Pisa, Italy.
  48. Piero Manfredi & Luciano Fanti, 2004. "Age distribution and age heterogeneities in economic profiles as sources of conflict between efficiency and equity in the Solow-Stiglitz framework," Discussion Papers 2004/37, Dipartimento di Economia e Management (DEM), University of Pisa, Pisa, Italy.
  49. Nicola Meccheri, 2003. "Performance-related-pay nel pubblico impiego: un'analisi economica," Discussion Papers 2003/3, Dipartimento di Economia e Management (DEM), University of Pisa, Pisa, Italy.
  50. Mario Morroni, 2006. "Complementarities among capability, transaction and scale-scope considerations in determining organisational boundaries," Discussion Papers 2006/58, Dipartimento di Economia e Management (DEM), University of Pisa, Pisa, Italy.
  51. Tommaso Luzzati & Alessandro Franco, 2004. "Idrogeno, fonti rinnovabili ed eco-efficienza. Quale approccio alla questione energetica?," Discussion Papers 2004/45, Dipartimento di Economia e Management (DEM), University of Pisa, Pisa, Italy.
  52. Luciano Fanti, 2003. "Fiscal policy and tax collection lags: stability, cycles and chaos," Discussion Papers 2003/15, Dipartimento di Economia e Management (DEM), University of Pisa, Pisa, Italy.
  53. Luciano Fanti, 2003. "Notes on Keynesian models of recession and depression," Discussion Papers 2003/19, Dipartimento di Economia e Management (DEM), University of Pisa, Pisa, Italy.
  54. Alga Foschi, . "The maritime container transport structure in the mediterranean and italy," Discussion Papers 2003/24, Dipartimento di Economia e Management (DEM), University of Pisa, Pisa, Italy.
  55. Lorenzo Corsini & Marco Guerrazzi, 2004. "Searching for Long Run Equilibrium Relationships in the Italian Labour Market: a Cointegrated VAR Approach," Discussion Papers 2004/43, Dipartimento di Economia e Management (DEM), University of Pisa, Pisa, Italy.
  56. Carlo Casarosa & Luca Spataro, 2005. "Propensione aggregata al risparmio, rapporto ricchezza-reddito e distribuzione della ricchezza nel modello del ciclo di vita "egualitario": il ruolo delle variabili demografiche," Discussion Papers 2005/51, Dipartimento di Economia e Management (DEM), University of Pisa, Pisa, Italy.
  57. Luciano Fanti & Piero Manfredi, 2003. "Neo-classical labour market dynamics, chaos and the Phillips curve," Discussion Papers 2003/21, Dipartimento di Economia e Management (DEM), University of Pisa, Pisa, Italy.
  58. Davide Fiaschi & Pier Mario Pacini, 2003. "Growth and coalition formation," Discussion Papers 2003/13, Dipartimento di Economia e Management (DEM), University of Pisa, Pisa, Italy.
  59. Alga Foschi, 2004. "Industria portuale marittima e sviluppo economico negli Stati Uniti," Discussion Papers 2004/26, Dipartimento di Economia e Management (DEM), University of Pisa, Pisa, Italy.
  60. Gaetano Alfredo Minerva, 2004. "How Do Cost (or Demand) Asymmetries and Competitive Pressure Shape Trade Patterns and Location?," Discussion Papers 2004/40, Dipartimento di Economia e Management (DEM), University of Pisa, Pisa, Italy.
  61. Tamara Fioroni, 2006. "Life Expectancy, Health Spending and Saving," Discussion Papers 2006/62, Dipartimento di Economia e Management (DEM), University of Pisa, Pisa, Italy.
Full references (including those not matched with items on IDEAS)

Citations

Blog mentions

As found by EconAcademics.org, the blog aggregator for Economics research:
  1. On the optimality of longevity?
    by Economic Logician in Economic Logic on 2009-11-23 15:33:00
Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
as in new window

Cited by:
  1. Fanti, Luciano & Gori, Luca, 2010. "Endogenous fertility, endogenous lifetime and economic growth: the role of child policies," MPRA Paper 26146, University Library of Munich, Germany.
  2. Luciano Fanti & Luca Gori, 2012. "Public Expenditure on Health and Private Old-Age Insurance in an OLG Growth Model with Endogenous Fertility: Chaotic Dynamics Under Perfect Foresight," Computational Economics, Society for Computational Economics, vol. 40(4), pages 333-353, December.
  3. Fanti, Luciano & Gori, Luca & Tramontana, Fabio, 2011. "Endogenous lifetime, accidental bequests and economic growth," MPRA Paper 34647, University Library of Munich, Germany.

Lists

This item is featured on the following reading lists or Wikipedia pages:
  1. Economic Logic blog

Statistics

Access and download statistics

Corrections

When requesting a correction, please mention this item's handle: RePEc:pie:dsedps:2009/92. 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: ().

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.