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Growth and inequality: a demographic explanation

  • Kazutoshi Miyazawa

This paper investigates the relationship between growth and inequality from a demographic point of view. In an extended model of the accidental bequest with endogenous fertility, we analyze the effects of a decrease in the old-age mortality rate on the equilibrium growth rate as well as on the income distribution. We show that the relationship between growth and inequality is at first positive and then may be negative in the process of population aging. The results are consistent with the empirical evidence in some developed countries.

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File URL: http://eprints.lse.ac.uk/6546/
File Function: Open access version.
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Paper provided by London School of Economics and Political Science, LSE Library in its series LSE Research Online Documents on Economics with number 6546.

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Length: 22 pages
Date of creation: Jul 2005
Date of revision:
Handle: RePEc:ehl:lserod:6546
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