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Economic growth and stagnation with endogenous health and fertility

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  • Holger Strulik

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Abstract

This article offers a theory of economic growth, stagnation, and demo-economic transition that originates from external effects of child-bearing, health expenditure, and education under endogenous mortality. Facing a hierarchy of needs, parents always consume and want to have a family. Child quality, measured as a two-dimensional vector of child health and schooling, becomes only affordable when uncontrollable mortality is sufficiently low. Child quality expenditure initiates an economic take-off and convergence towards perpetual growth while its absence may cause convergence towards an equilibrium of economic stagnation and high fertility. This way, the article provides an explanation for diverging growth rates from a cross-country perspective. Copyright Springer-Verlag 2004

Suggested Citation

  • Holger Strulik, 2004. "Economic growth and stagnation with endogenous health and fertility," Journal of Population Economics, Springer;European Society for Population Economics, vol. 17(3), pages 433-453, August.
    • Handle: RePEc:spr:jopoec:v:17:y:2004:i:3:p:433-453
    DOI: 10.1007/s00148-004-0188-z
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    References listed on IDEAS

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    Cited by:

    1. Matteo Cervellati & Uwe Sunde, 2015. "The Economic and Demographic Transition, Mortality, and Comparative Development," American Economic Journal: Macroeconomics, American Economic Association, vol. 7(3), pages 189-225, July.
    2. repec:ebl:ecbull:v:9:y:2008:i:7:p:1-7 is not listed on IDEAS
    3. Katarina Keller, 2006. "Education Expansion, Expenditures per Student and the Effects on Growth in Asia," Global Economic Review, Taylor & Francis Journals, vol. 35(1), pages 21-42.
    4. Simone D’Alessandro & Tamara Fioroni, 2016. "Child labour and inequality," The Journal of Economic Inequality, Springer;Society for the Study of Economic Inequality, vol. 14(1), pages 63-79, March.
    5. Fanti, Luciano & Gori, Luca, 2011. "Public health spending, old-age productivity and economic growth: Chaotic cycles under perfect foresight," Journal of Economic Behavior & Organization, Elsevier, vol. 78(1-2), pages 137-151, April.
    6. repec:spr:eurase:v:7:y:2017:i:1:d:10.1007_s40822-016-0062-9 is not listed on IDEAS
    7. Holger Strulik & Sebastian Vollmer, 2010. "The Fertility Transition Around the World - 1950-2005," PGDA Working Papers 5710, Program on the Global Demography of Aging.
    8. Strulik, Holger, 2008. "Geography, health, and the pace of demo-economic development," Journal of Development Economics, Elsevier, vol. 86(1), pages 61-75, April.
    9. Edgar Vogel, 2009. "From Malthus to modern growth: child labor, schooling and human capital," MEA discussion paper series 09180, Munich Center for the Economics of Aging (MEA) at the Max Planck Institute for Social Law and Social Policy.
    10. Stauvermann, Peter Josef & Kumar, Ronald, 2014. "Enhancing Growth and Welfare through debt-financed Education," MPRA Paper 59455, University Library of Munich, Germany.
    11. Salam Abdus & Peter Rangazas, 2011. "Adult Nutrition and Growth," Review of Economic Dynamics, Elsevier for the Society for Economic Dynamics, vol. 14(4), pages 636-649, October.
    12. Dimico, Arcangelo, 2014. "Poverty trap and educational shock: Evidence from missionary fields," QUCEH Working Paper Series 14-07, Queen's University Belfast, Queen's University Centre for Economic History.
    13. Luciano Fanti & Mimmo Iannelli & Piero Manfredi, 2013. "Neoclassical growth with endogenous age distribution. Poverty vs low-fertility traps as steady states of demographic transitions," Journal of Population Economics, Springer;European Society for Population Economics, vol. 26(4), pages 1457-1484, October.
    14. Paolo Melindi-Ghidi & Willem Sas, 2015. "Invest as You Go: How Public Health Investment Keeps Pension Systems Healthy," Working Papers halshs-01171701, HAL.
    15. Currais, Luis & Rivera, Berta & Rungo, Paolo, 2010. "Effects of the complementarity of child nutrition and education on persistent deprivation," Economics Letters, Elsevier, vol. 106(1), pages 67-69, January.
    16. Holger Strulik & Sebastian Vollmer, 2015. "The fertility transition around the world," Journal of Population Economics, Springer;European Society for Population Economics, vol. 28(1), pages 31-44, January.
    17. repec:ebl:ecbull:v:10:y:2008:i:8:p:1-7 is not listed on IDEAS
    18. repec:ebl:ecbull:v:10:y:2008:i:7:p:1-6 is not listed on IDEAS
    19. Vogel, Edgar, 2008. "From Malthus to modern growth : child labor, schooling and human capital," Papers 08-42, Sonderforschungsbreich 504.
    20. Peter J. Stauvermann & Ronald R. Kumar, 2016. "Sustainability of A Pay-as-you-Go Pension System in A Small Open Economy with Ageing, Human Capital and Endogenous Fertility," Metroeconomica, Wiley Blackwell, vol. 67(1), pages 2-20, February.
    21. Holger Strulik, 2005. "Geography, Health, and Demo-Economic Development," Discussion Papers 05-15, University of Copenhagen. Department of Economics.
    22. Corey Sparks, 2009. "An application of the variable-r method to subpopulation growth rates in a 19th century agricultural population," Demographic Research, Max Planck Institute for Demographic Research, Rostock, Germany, vol. 21(2), pages 23-64, July.

    More about this item

    Keywords

    J10; J13; O11; O12; Demographic transition; stages of development; geography; health;

    JEL classification:

    • J10 - Labor and Demographic Economics - - Demographic Economics - - - General
    • J13 - Labor and Demographic Economics - - Demographic Economics - - - Fertility; Family Planning; Child Care; Children; Youth
    • O11 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development
    • O12 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Microeconomic Analyses of Economic Development

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