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An OLG model of growth with longevity: when grandparents take care of grandchildren

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  • Luciano Fanti

    ()

  • Luca Gori

    ()

Abstract

By assuming that grandparents take care of grandchildren, this paper aims at studying the effects of longevity on long-term economic growth in a model with overlapping generations and endogenous fertility. We show that an increase in longevity may: (i) reduce the long-term economic growth; (ii) increase the supply of labour, and (iii) cause fertility either to increase of decrease depending on the size of time spent by grandparents to rise grandchildren. These findings also hold in an endogenous growth setting à la Romer (J Polit Econ 94:1002–1037, 1986 ). Copyright ISEG 2014

Suggested Citation

  • 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.
  • Handle: RePEc:spr:portec:v:13:y:2014:i:1:p:39-51
    DOI: 10.1007/s10258-014-0097-3
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    References listed on IDEAS

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    More about this item

    Keywords

    Longevity; OLG model; J13; J22; O41;

    JEL classification:

    • J13 - Labor and Demographic Economics - - Demographic Economics - - - Fertility; Family Planning; Child Care; Children; Youth
    • O41 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - One, Two, and Multisector Growth Models
    • J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply

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