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

Listed author(s):
  • Luciano Fanti

    ()

  • Luca Gori

    ()

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

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File URL: http://hdl.handle.net/10.1007/s10258-014-0097-3
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Article provided by Springer & Instituto Superior de Economia e Gestao in its journal Portuguese Economic Journal.

Volume (Year): 13 (2014)
Issue (Month): 1 (April)
Pages: 39-51

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Handle: RePEc:spr:portec:v:13:y:2014:i:1:p:39-51
DOI: 10.1007/s10258-014-0097-3
Contact details of provider: Web page: http://www.springer.com

Web page: https://www.iseg.ulisboa.pt/aquila/instituicao/ISEG/

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  1. Romer, Paul M, 1986. "Increasing Returns and Long-run Growth," Journal of Political Economy, University of Chicago Press, vol. 94(5), pages 1002-1037, October.
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  25. Luca Spataro & Luciano Fanti, 2011. "The Optimal Level of Debt in an OLG Model with Endogenous Fertility," German Economic Review, Verein für Socialpolitik, vol. 12(3), pages 351-369, 08.
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