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Rising Longevity, Human Capital and Fertility in Overlapping Generations Version of an R&D-based Growth Model

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  • Ken-ichi Hashimoto

    (Graduate School of Economics, Kobe University)

  • Ken Tabata

    (School of Economics, Kwansei Gakuin University)

Abstract

This paper constructs a simple, overlapping generations version of an R&D-based growth model à la Diamond (1965) and Jones (1995), and examines how an increase in old-age survival probability impacts purposeful R&D investment and long-run growth by affecting fertility and education decisions. We demonstrate that under certain conditions, old-age survival probability, when relatively low (high), positively (negatively) affect economic growth. This study also compares the growth implications of child education subsidies and child rearing subsidies and demonstrates that although child education subsidies always foster economic growth, child rearing subsidies may negatively impact economic growth in particular situations. Finally, we briefly consider the effects of a child education subsidy on welfare levels.

Suggested Citation

  • Ken-ichi Hashimoto & Ken Tabata, 2013. "Rising Longevity, Human Capital and Fertility in Overlapping Generations Version of an R&D-based Growth Model," Discussion Paper Series 104, School of Economics, Kwansei Gakuin University, revised May 2013.
    • Handle: RePEc:kgu:wpaper:104
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    Cited by:

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    2. Prettner, Klaus, 2014. "The non-monotonous impact of population growth on economic prosperity," Economics Letters, Elsevier, vol. 124(1), pages 93-95.

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    More about this item

    Keywords

    R&D; Fertility; Human Capital; Child Education Subsidy; Child Rearing Subsidy;
    All these keywords.

    JEL classification:

    • J13 - Labor and Demographic Economics - - Demographic Economics - - - Fertility; Family Planning; Child Care; Children; Youth
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • O10 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - General
    • O30 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - General
    • O40 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - General

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