Does the Mortality Decline Promote Economic Growth?

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Does the Mortality Decline Promote Economic Growth?

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Sebnem Kalemli-Ozcan (The University of Houston)

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Sebnem Kalemli-Ozcan

Abstract

This paper analyzes qualitatively and quantitatively the e ects of declining mortality rates on fertility, education and economic growth. The analysis demonstrates that if individuals are prudent in the face of uncertainty about child survival, a decline in an exogenous mortality rate reduces precautionary demand for children and increases parental investment in each child. Once mortality is endogenized, population growth becomes a hump-shaped function of income per capita. At low levels of income population growth rises as income per capita rises leading to a Malthusian steady-state equilibrium, whereas at high levels of income population growth declines leading to a sustained growth steadystate equilibrium.

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Paper provided by EconWPA in its series Macroeconomics with number 0212008.

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Date of creation: 17 Dec 2002
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Handle: RePEc:wpa:wuwpma:0212008

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Article
- Kalemli-Ozcan, Sebnem, 2002. " Does the Mortality Decline Promote Economic Growth?," Journal of Economic Growth, Springer, vol. 7(4), pages 411-39, December. [Downloadable!] (restricted)

Find related papers by JEL classification:
O11 - Economic Development, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development
O40 - Economic Development, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - General
I12 - Health, Education, and Welfare - - Health - - - Health Production
J11 - Labor and Demographic Economics - - Demographic Economics - - - Demographic Trends and Forecasts
J13 - Labor and Demographic Economics - - Demographic Economics - - - Fertility; Family Planning; Child Care; Children; Youth

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