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Longer lives, fertility and accumulation

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  • Mateos, X.

Abstract

This paper investigates the implications of an exogenous decline in mortality rates for capital accumulation and fertility in a neoclassical economy with dynastic preferences. The analysis shows that drops in mortality can explain the transition from a regime with high levels of fertility and low output per capita to a situation with low fertility and larger output per capita. The differential impact of mortality declines on different age-groups is shown to be very important in driving this result. A positive effect on per-capita output arises only if the reductions in mortality have a larger relative impact at young ages. The dynamic adjustment is consistent with the non-monotonic path of fertility over time observed over the demographic transition.

Suggested Citation

  • Mateos, X., 1998. "Longer lives, fertility and accumulation," Discussion Paper Series In Economics And Econometrics 9822, Economics Division, School of Social Sciences, University of Southampton.
  • Handle: RePEc:stn:sotoec:9822
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    Cited by:

    1. Boucekkine, Raouf & de la Croix, David & Licandro, Omar, 2002. "Vintage Human Capital, Demographic Trends, and Endogenous Growth," Journal of Economic Theory, Elsevier, vol. 104(2), pages 340-375, June.

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