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Longevity, fertility and Demographic Transition in an OLG model

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  • Luciano Fanti

    () (University of Pisa)

Abstract

The paper investigates the effects of declining mortality on fertility and income in the standard OLG neoclassical growth model under the assumptions of accidental bequests as well as fully annuitised savings. It is shown whether and how different countries may expect increasing or decreasing fertility rates under increasing longevity, and argued that mortality decline may be another explanation of the Demographic Transition process. In particular, the fact that some countries have completed the process while others are entrapped in the second stage may depend on the initial level of mortality as well as on differences in technology and preferences. It is also argued that the third stage may not necessarily occur in some less developed countries even if their mortality rates converge towards those of industrialised countries.

Suggested Citation

  • Luciano Fanti, 2009. "Longevity, fertility and Demographic Transition in an OLG model," Economics Bulletin, AccessEcon, vol. 29(1), pages 347-356.
  • Handle: RePEc:ebl:ecbull:eb-08j00001
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    File URL: http://www.accessecon.com/Pubs/EB/2009/Volume29/EB-09-V29-I1-P36.pdf
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    References listed on IDEAS

    as
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    Cited by:

    1. Luciano Fanti & Luca Gori, 2014. "An OLG model of growth with longevity: when grandparents take care of grandchildren," Portuguese Economic Journal, Springer;Instituto Superior de Economia e Gestao, vol. 13(1), pages 39-51, April.
    2. Luciano Fanti, 2012. "Endogenous labour supply, habits and aspirations," Discussion Papers 2012/144, Dipartimento di Economia e Management (DEM), University of Pisa, Pisa, Italy.

    More about this item

    Keywords

    longevity;

    JEL classification:

    • J0 - Labor and Demographic Economics - - General
    • D9 - Microeconomics - - Micro-Based Behavioral Economics

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