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Endogenous lifetime, accidental bequests and economic growth

  • Fanti, Luciano
  • Gori, Luca
  • Tramontana, Fabio

his paper introduces unintentional bequests in a closed economy overlapping generations model à la Chakraborty (2004). We show that poverty traps due to scarce public investments in health can exist. However, and most important, the existence of unintentional bequests makes the health tax rate to play a prominent role in determining the stability conditions of the equilibrium in rich economies. Indeed, non-monotonic dynamics, Neimark-Sacker bifurcations and deterministic chaos can occur depending on the size of the public health system.

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Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 34647.

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Date of creation: 11 Nov 2011
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Handle: RePEc:pra:mprapa:34647
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