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

  • 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 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
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  1. Galor, Oded & Weil, David, 1995. "The Gender Gap, Fertility and Growth," CEPR Discussion Papers 1157, C.E.P.R. Discussion Papers.
  2. Eckstein, Zvi & Stern, Steven & Wolpin, Kenneth I, 1988. "Fertility Choice, Land, and the Malthusian Hypothesis," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 29(2), pages 353-61, May.
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  10. Fanti, Luciano & Gori, Luca, 2010. "Fertility-related pensions and cyclical instability," MPRA Paper 20221, University Library of Munich, Germany.
  11. Shankha Chakraborty, 2002. "Endogenous Lifetime and Economic Growth," University of Oregon Economics Department Working Papers 2002-03, University of Oregon Economics Department, revised 26 Jan 2002.
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  19. Zhang, Junsen & Zhang, Jie & Lee, Ronald, 2001. "Mortality decline and long-run economic growth," Journal of Public Economics, Elsevier, vol. 80(3), pages 485-507, June.
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