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Demographic and Economic Consequences of the Post-war Mortality Decline in Developing Countries

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  • Ulla Lehmijoki
  • Tapio Palokangas

Abstract

Since World War II, mortality has decreased in the developing world. This paper explores the effects of this mortality fall on economic and demographic growth by a family-optimization model, in which fertility is endogenous and relative wealth yields utility because of status-seeking. The main findings are that the increased life expectancy generates an income stream which promotes fertility, but that the desire for status hampers fertility and warrants economic growth by preventing capital-diluting demographic expansion. If status-seeking is strong, population growth decreases below its original level in the long run but in the short run, population growth may overshoot.

Suggested Citation

  • Ulla Lehmijoki & Tapio Palokangas, 2010. "Demographic and Economic Consequences of the Post-war Mortality Decline in Developing Countries," DEGIT Conference Papers c015_010, DEGIT, Dynamics, Economic Growth, and International Trade.
    • Handle: RePEc:deg:conpap:c015_010
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    File URL: http://degit.sam.sdu.dk/papers/degit_15/c015_010.pdf
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    References listed on IDEAS

    as
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    More about this item

    Keywords

    mortality; population growth; economic growth;
    All these keywords.

    JEL classification:

    • O41 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - One, Two, and Multisector Growth Models
    • J13 - Labor and Demographic Economics - - Demographic Economics - - - Fertility; Family Planning; Child Care; Children; Youth
    • J10 - Labor and Demographic Economics - - Demographic Economics - - - General
    • O10 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - General

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