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The threshold effect of longevity: life expectancy and economic growth

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  • Lei He
  • Na Li

Abstract

Differing from the nonlinear effect of life expectancy (LE) estimated by previous empirical studies based on a quadratic equation which may be inapplicable for asymmetric nonlinear relationships, this note uses dynamic threshold model to investigate the asymmetric threshold effect of LE. The results show that the significant positive effect of LE on income per capita can only be realized above the threshold, whereas there is an insignificant linkage between LE and economic growth below the threshold level when inflation is eliminated.

Suggested Citation

  • Lei He & Na Li, 2019. "The threshold effect of longevity: life expectancy and economic growth," Applied Economics Letters, Taylor & Francis Journals, vol. 26(14), pages 1210-1213, August.
    • Handle: RePEc:taf:apeclt:v:26:y:2019:i:14:p:1210-1213
    DOI: 10.1080/13504851.2018.1543932
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