IDEAS home Printed from https://ideas.repec.org/a/ebl/ecbull/eb-18-00588.html
   My bibliography  Save this article

Longevity, Human Capital and Domestic Investment

Author

Listed:
  • Francisco Parro

    (Universidad Adolfo Ibáñez)

  • Patricio Valenzuela

    (Universidad de Chile)

Abstract

This article explores the interaction between aggregate initial human capital, life expectancy and domestic investment. The article introduces a simple model that predicts that the positive effect of life expectancy on the domestic investment rate is mitigated in economies with a higher level of initial human capital. Using a large panel of countries over the past five decades, the article presents empirical evidence consistent with the main prediction of the model.

Suggested Citation

  • Francisco Parro & Patricio Valenzuela, 2018. "Longevity, Human Capital and Domestic Investment," Economics Bulletin, AccessEcon, vol. 38(3), pages 1547-1553.
    • Handle: RePEc:ebl:ecbull:eb-18-00588
    as

    Download full text from publisher

    File URL: http://www.accessecon.com/Pubs/EB/2018/Volume38/EB-18-V38-I3-P146.pdf
    Download Restriction: no
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Gary S. Becker & Kevin M. Murphy, 1994. "The Division of Labor, Coordination Costs, and Knowledge," NBER Chapters, in: Human Capital: A Theoretical and Empirical Analysis with Special Reference to Education, Third Edition, pages 299-322, National Bureau of Economic Research, Inc.
    2. Matteo Cervellati & Uwe Sunde, 2011. "Life expectancy and economic growth: the role of the demographic transition," Journal of Economic Growth, Springer, vol. 16(2), pages 99-133, June.
    3. Daron Acemoglu & Simon Johnson, 2007. "Disease and Development: The Effect of Life Expectancy on Economic Growth," Journal of Political Economy, University of Chicago Press, vol. 115(6), pages 925-985, December.
    4. Li, Hongbin & Zhang, Jie & Zhang, Junsen, 2007. "Effects of longevity and dependency rates on saving and growth: Evidence from a panel of cross countries," Journal of Development Economics, Elsevier, vol. 84(1), pages 138-154, September.
    5. David E. Bloom & David Canning & Günther Fink, 2014. "Disease and Development Revisited," Journal of Political Economy, University of Chicago Press, vol. 122(6), pages 1355-1366.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Lei He & Na Li, 2020. "The linkages between life expectancy and economic growth: some new evidence," Empirical Economics, Springer, vol. 58(5), pages 2381-2402, May.
    2. Lei He & Zhengqi Wang, 2023. "The interaction effects of rising life expectancy and the public pension burden on aggregate savings and economic growth," Portuguese Economic Journal, Springer;Instituto Superior de Economia e Gestao, vol. 22(2), pages 229-250, May.
    3. Matteo Cervellati & Uwe Sunde, 2015. "The effect of life expectancy on education and population dynamics," Empirical Economics, Springer, vol. 48(4), pages 1445-1478, June.
    4. Pascual-Saez, Marta & Cantarero-Prieto, David & Pires Manso, José R., 2020. "Does population ageing affect savings in Europe?," Journal of Policy Modeling, Elsevier, vol. 42(2), pages 291-306.
    5. Holger Strulik & Katharina Werner, 2016. "50 is the new 30—long-run trends of schooling and retirement explained by human aging," Journal of Economic Growth, Springer, vol. 21(2), pages 165-187, June.
    6. Schünemann, Johannes & Bloom, David E. & Canning, David & Kotschy, Rainer & Prettner, Klaus, 2018. "Health and Economic Growth: Reconciling the Micro and Macro Evidence," VfS Annual Conference 2018 (Freiburg, Breisgau): Digital Economy 181554, Verein für Socialpolitik / German Economic Association.
    7. David E. Bloom & David Canning & Günther Fink, 2014. "Disease and Development Revisited," Journal of Political Economy, University of Chicago Press, vol. 122(6), pages 1355-1366.
    8. Vishal Jaunky, 2013. "The Wealth-Health Nexus: New Global Evidence," Atlantic Economic Journal, Springer;International Atlantic Economic Society, vol. 41(2), pages 115-122, June.
    9. Gehringer, Agnieszka & Prettner, Klaus, 2019. "Longevity And Technological Change," Macroeconomic Dynamics, Cambridge University Press, vol. 23(4), pages 1471-1503, June.
    10. David E. Bloom & Michael Kuhn & Klaus Prettner, 2022. "Modern Infectious Diseases: Macroeconomic Impacts and Policy Responses," Journal of Economic Literature, American Economic Association, vol. 60(1), pages 85-131, March.
    11. Casper Worm Hansen, 2012. "Causes of mortality and development: Evidence from large health shocks in 20th century America," Economics Working Papers 2012-29, Department of Economics and Business Economics, Aarhus University.
    12. Dierk Herzer, 2017. "The Long-run Relationship Between Trade and Population Health: Evidence from Five Decades," The World Economy, Wiley Blackwell, vol. 40(2), pages 462-487, February.
    13. Nishimura, Yukihiro & Pestieau, Pierre & Ponthiere, Gregory, 2018. "Education choices, longevity and optimal policy in a Ben-Porath economy," Mathematical Social Sciences, Elsevier, vol. 94(C), pages 65-81.
    14. Hansen, Casper Worm, 2014. "Cause of death and development in the US," Journal of Development Economics, Elsevier, vol. 109(C), pages 143-153.
    15. Lorenzo Rocco & Elena Fumagalli & Andrew J Mirelman & Marc Suhrcke, 2021. "Mortality, morbidity and economic growth," PLOS ONE, Public Library of Science, vol. 16(5), pages 1-22, May.
    16. Masagus M. Ridhwan & Peter Nijkamp & Affandi Ismail & Luthfi M.Irsyad, 2022. "The effect of health on economic growth: a meta-regression analysis," Empirical Economics, Springer, vol. 63(6), pages 3211-3251, December.
    17. Gallardo-Albarrán, Daniel, 2018. "Health and economic development since 1900," Economics & Human Biology, Elsevier, vol. 31(C), pages 228-237.
    18. cyrine hannafi & Christophe Muller, 2016. "The Poverty-Economic Growth-Health Triangle," EcoMod2016 9587, EcoMod.
    19. Kotschy, Rainer, 2021. "Health dynamics shape life-cycle incomes," Journal of Health Economics, Elsevier, vol. 75(C).
    20. Madsen, Jakob B., 2016. "Health, Human Capital Formation And Knowledge Production: Two Centuries Of International Evidence," Macroeconomic Dynamics, Cambridge University Press, vol. 20(4), pages 909-953, June.

    More about this item

    Keywords

    Domestic investment; Life expectancy; Human capital;
    All these keywords.

    JEL classification:

    • E2 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment
    • J1 - Labor and Demographic Economics - - Demographic Economics

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ebl:ecbull:eb-18-00588. See general information about how to correct material in RePEc.

    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 CitEc recognized a bibliographic reference but did not link an item in RePEc 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 RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: John P. Conley (email available below). General contact details of provider: .

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

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.