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Longevity and technological change

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  • Gehringer, Agnieszka
  • Prettner, Klaus

Abstract

We analyze the impact of increasing longevity on technological progress within an R&D-based endogenous growth framework and test the model's implications on OECD data from 1960 to 2011. The central hypothesis derived in the theoretical part is that - by raising the incentives of households to invest in physical capital and in R&D - decreasing mortality positively impacts upon technological progress and thereby also on productivity growth. The empirical results clearly confirm the theoretical prediction which implies that the ongoing demographic changes in industrialized economies are not necessarily detrimental to economic prosperity, at least as far as technological progress and productivity growth are concerned.

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  • Gehringer, Agnieszka & Prettner, Klaus, 2014. "Longevity and technological change," ECON WPS - Vienna University of Technology Working Papers in Economic Theory and Policy 01/2014, Vienna University of Technology, Institute for Mathematical Methods in Economics, Research Group Economics (ECON).
  • Handle: RePEc:zbw:tuweco:012014
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    Cited by:

    1. Andreas Irmen & Anastasia Litina, 2016. "Population Aging and Inventive Activity," CESifo Working Paper Series 5841, CESifo Group Munich.
    2. Abeliansky, Ana & Prettner, Klaus, 2017. "Automation and demographic change," Center for European, Governance and Economic Development Research Discussion Papers 310, University of Goettingen, Department of Economics.
    3. Annarita BALDANZI & Alberto BUCCI & Klaus PRETTNER, 2016. "The Effects of Health Investments on Human Capital and R&D-Driven Economic Growth," Departmental Working Papers 2016-17, Department of Economics, Management and Quantitative Methods at Università degli Studi di Milano.
    4. Baldanzi, Annarita & Prettner, Klaus & Tscheuschner, Paul, 2017. "Longevity-induced vertical innovation and the tradeoff between life and growth," Hohenheim Discussion Papers in Business, Economics and Social Sciences 31-2017, University of Hohenheim, Faculty of Business, Economics and Social Sciences.
    5. Koichi Futagami & Kunihiko Konishi, 2017. "Rising Longevity, Fertility Dynamics, and R&D-based Growth," Discussion Papers in Economics and Business 17-26, Osaka University, Graduate School of Economics and Osaka School of International Public Policy (OSIPP).
    6. Baldanzi, Annarita & Bucci, Alberto & Prettner, Klaus, 2017. "Children's health, human capital accumulation, and R&D-based economic growth," Hohenheim Discussion Papers in Business, Economics and Social Sciences 01-2017, University of Hohenheim, Faculty of Business, Economics and Social Sciences.
    7. Kufenko, Vadim & Prettner, Klaus, 2016. "You can't always get what you want? Estimator choice and the speed of convergence," Hohenheim Discussion Papers in Business, Economics and Social Sciences 20-2016, University of Hohenheim, Faculty of Business, Economics and Social Sciences.
    8. Kufenko, Vadmin & Prettner, Klaus, 2017. "You can't always get what you want? A Monte Carlo analysis of the bias and the efficiency of dynamic panel data estimators," ECON WPS - Vienna University of Technology Working Papers in Economic Theory and Policy 07/2017, Vienna University of Technology, Institute for Mathematical Methods in Economics, Research Group Economics (ECON).

    More about this item

    Keywords

    Demographic Change; Longevity; Productivity; Technological Progress; Economic Prosperity;

    JEL classification:

    • J11 - Labor and Demographic Economics - - Demographic Economics - - - Demographic Trends, Macroeconomic Effects, and Forecasts
    • O11 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development
    • O40 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - General
    • O41 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - One, Two, and Multisector Growth Models

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