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Did Longer Lives Buy Economic Growth? From Malthus to Lucas and Ben-Porath

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  • David de la Croix

    (UNIVERSITE CATHOLIQUE DE LOUVAIN, Institut de Recherches Economiques et Sociales (IRES))

Abstract

The note provides a summary of the possible impact of increases in adult longevity on economic growth with a focus on two particular channels: the contact time effect and the incentive effect. After documenting empirical evidence concerning the rise of longevity, two methods to measure longevity are presented, namely the Gompertz Law and the BCL Law of Mortality. These methods are then applied qualitatively and quantitatively to various models to show the effect of longevity on growth. Overall, the note concludes that increases in longevity are quantitatively significant for the increases in growth observed over the last two centuries and calls for the consideration of demographic factors when examining determinants of growth.

Suggested Citation

  • David de la Croix, 2015. "Did Longer Lives Buy Economic Growth? From Malthus to Lucas and Ben-Porath," LIDAM Discussion Papers IRES 2015012, Université catholique de Louvain, Institut de Recherches Economiques et Sociales (IRES).
    • Handle: RePEc:ctl:louvir:2015012
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    File URL: http://sites.uclouvain.be/econ/DP/IRES/2015012.pdf
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    References listed on IDEAS

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    1. Raouf Boucekkine & David de la Croix & Dominique Peeters, 2007. "Early Literacy Achievements, Population Density, and the Transition to Modern Growth," Journal of the European Economic Association, MIT Press, vol. 5(1), pages 183-226, March.
    2. Matteo Cervellati & Uwe Sunde, 2013. "Life Expectancy, Schooling, and Lifetime Labor Supply: Theory and Evidence Revisited," Econometrica, Econometric Society, vol. 81(5), pages 2055-2086, September.
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    5. David de la Croix & Matthias Doepke & Joel Mokyr, 2018. "Clans, Guilds, and Markets: Apprenticeship Institutions and Growth in the Preindustrial Economy," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 133(1), pages 1-70.
    6. Boucekkine, Raouf & de la Croix, David & Licandro, Omar, 2002. "Vintage Human Capital, Demographic Trends, and Endogenous Growth," Journal of Economic Theory, Elsevier, vol. 104(2), pages 340-375, June.
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    9. Moshe Hazan, 2009. "Longevity and Lifetime Labor Supply: Evidence and Implications," Econometrica, Econometric Society, vol. 77(6), pages 1829-1863, November.
    10. Neil Cummins, 2014. "Longevity and the Rise of the West: Lifespans of the European Elite, 800-1800," Working Papers 0064, European Historical Economics Society (EHES).
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    12. Bruce, Neil & Turnovsky, Stephen J., 2013. "Social security, growth, and welfare in overlapping generations economies with or without annuities," Journal of Public Economics, Elsevier, vol. 101(C), pages 12-24.
    13. David de la Croix & Thomas Lindh & Bo Malmberg, 2008. "Swedish economic growth and education since 1800," Canadian Journal of Economics, Canadian Economics Association, vol. 41(1), pages 166-185, February.
    14. Heijdra, Ben J. & Mierau, Jochen O., 2010. "Growth Effects Of Consumption And Labor-Income Taxation In An Overlapping-Generations Life-Cycle Model," Macroeconomic Dynamics, Cambridge University Press, vol. 14(S2), pages 151-175, November.
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    Cited by:

    1. Sánchez-Romero, Miguel & d׳Albis, Hippolyte & Prskawetz, Alexia, 2016. "Education, lifetime labor supply, and longevity improvements," Journal of Economic Dynamics and Control, Elsevier, vol. 73(C), pages 118-141.

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