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A closer look at the relationship between life expectancy and economic growth

Author

Listed:
  • AZOMAHOU, Théophile T.
  • BOUCEKKINE, Raouf
  • DIENE, Bity

Abstract

We first provide a nonparametric inference of the relationship between life expectancy and economic growth on an historical data for 18 countries over the period 1820-2005. The obtained shape shows up convexity for low enough values of life expectancy and concavity for large enough values. We then study this relationship on a benchmark model combining perpetual youth" and learning-by-investing. In such a benchmark, the generated relationship between life expectancy and economic growth is shown to be strictly increasing and concave. We finally examine two models departing from perpetual youth" by assuming successively age-dependent earnings and age-dependent survival probabilities. With age-dependent earnings, the obtained relationship is hump-shaped while agedependent survival laws do reproduce the convex-concave shape detected in the prior empirical study.
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Suggested Citation

  • AZOMAHOU, Théophile T. & BOUCEKKINE, Raouf & DIENE, Bity, 2009. "A closer look at the relationship between life expectancy and economic growth," LIDAM Reprints CORE 2115, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
    • Handle: RePEc:cor:louvrp:2115
    DOI: 10.1111/j.1742-7363.2009.00105.x
    Note: In : International Journal of Economic Theory, 5, 201-244, 2009
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    JEL classification:

    • O41 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - One, Two, and Multisector Growth Models
    • I20 - Health, Education, and Welfare - - Education - - - General
    • J10 - Labor and Demographic Economics - - Demographic Economics - - - General

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