IDEAS home Printed from https://ideas.repec.org/a/mul/jqat1f/doi10.1427-34975y2011i2p319-338.html
   My bibliography  Save this article

Public Health Spending and Unfunded Public Pensions in an OLG Model of Neoclassical Growth: Some New Results About the Poverty Trap Problem

Author

Listed:
  • Luciano Fanti
  • Luca Gori

Abstract

This paper introduces unfunded pay-as-you-go public pensions in a two-period overlapping generations economy with endogenous lifetime à la Chakraborty (2004). We study the transitional dynamics and steady states outcomes of the economy, showing that the public provision of health services may have not only the well-known beneficial effect to help to escape from poverty, but it can also produce unexpected negative consequences for per capita GDP in both low-income-high-mortality and high-income-low-mortality societies. Moreover, under myopic expectations, the government health expenditure can generate non-monotonic fluctuations in low mortality societies.

Suggested Citation

  • Luciano Fanti & Luca Gori, 2011. "Public Health Spending and Unfunded Public Pensions in an OLG Model of Neoclassical Growth: Some New Results About the Poverty Trap Problem," Rivista italiana degli economisti, Società editrice il Mulino, issue 2, pages 319-338.
  • Handle: RePEc:mul:jqat1f:doi:10.1427/34975:y:2011:i:2:p:319-338
    as

    Download full text from publisher

    File URL: https://www.rivisteweb.it/download/article/10.1427/34975
    Download Restriction: Access to full text is restricted to subscribers

    File URL: https://www.rivisteweb.it/doi/10.1427/34975
    Download Restriction: no

    As the access to this document is restricted, you may want to search for a different version of it.

    More about this item

    Keywords

    health; OLG model; public pensions; C62; I18; J1; O4.;

    JEL classification:

    • C62 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Existence and Stability Conditions of Equilibrium
    • I18 - Health, Education, and Welfare - - Health - - - Government Policy; Regulation; Public Health
    • 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:mul:jqat1f:doi:10.1427/34975:y:2011:i:2:p:319-338. 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: (). General contact details of provider: https://www.rivisteweb.it/ .

    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.

    We have no references for this item. You can help adding them by using 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.

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

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.