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Mortality, fertility and old age care in a two-sex growth model

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Abstract

The paper discusses the importance of decreasing mortality in explaining demographic change over the last century. A two-sex overlapping generations model is used where care both for children and the elderly is modeled. Assuming that the main costs of care are tied to time use (and thereby fairly invariant to income changes), the paper illustrates how exogenous changes in mortality, the cost of children and the bargaining power of women can explain fluctuations in both the level and timing of births. The interaction between declining mortality and the expansion of care for the elderly is of special importance. As a consequence, mortality affects fertility differently according to how much the government sector has expanded and how much human capital has been accumulated. At an early development stage, when public care is little developed, the effect of decreasing mortality on fertility is found to be positive, while at a later stage, with higher levels of public care, the effect is found to be negative.

Suggested Citation

  • Leif Andreassen, 2004. "Mortality, fertility and old age care in a two-sex growth model," Discussion Papers 378, Statistics Norway, Research Department.
  • Handle: RePEc:ssb:dispap:378
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    File URL: http://www.ssb.no/a/publikasjoner/pdf/DP/dp378.pdf
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    1. S. Rao Aiyagari & Jeremy Greenwood & Nezih Guner, 2000. "On the State of the Union," Journal of Political Economy, University of Chicago Press, vol. 108(2), pages 213-244, April.
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    5. Zhang, Junsen & Zhang, Jie & Lee, Ronald, 2001. "Mortality decline and long-run economic growth," Journal of Public Economics, Elsevier, pages 485-507.
    6. Cristino R. Arroyo & Junsen Zhang, 1997. "Dynamic microeconomic models of fertility choice: A survey," Journal of Population Economics, Springer;European Society for Population Economics, vol. 10(1), pages 23-65.
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    Cited by:

    1. Agénor, Pierre-Richard & Canuto, Otaviano & da Silva, Luiz Pereira, 2014. "On gender and growth: The role of intergenerational health externalities and women's occupational constraints," Structural Change and Economic Dynamics, Elsevier, vol. 30(C), pages 132-147.

    More about this item

    Keywords

    mortality; fertility; old age care; olg;

    JEL classification:

    • D1 - Microeconomics - - Household Behavior
    • D9 - Microeconomics - - Micro-Based Behavioral Economics
    • J1 - Labor and Demographic Economics - - Demographic Economics

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