This paper provides a politico-economic theory that explains how an economy evolves when the longevity of its citizens is jointly determined with the process of economic development. We propose a three-period overlapping generation model where agents’ decisions embrace two dimensions: a private choice about education and a public one on innovation policy. We find that (a) poverty traps can emerge in human capital accumulation, (b) higher life expectancy increases the incentive to innovate for both young and adults, (c) different political configurations can arise depending on endogenous demographic structures and (d) the steady state can entertain both innovation and its absence.

A Politico-economic Model of Aging, Technology Adoption and Growth

LANCIA, Francesco;
2012

Abstract

This paper provides a politico-economic theory that explains how an economy evolves when the longevity of its citizens is jointly determined with the process of economic development. We propose a three-period overlapping generation model where agents’ decisions embrace two dimensions: a private choice about education and a public one on innovation policy. We find that (a) poverty traps can emerge in human capital accumulation, (b) higher life expectancy increases the incentive to innovate for both young and adults, (c) different political configurations can arise depending on endogenous demographic structures and (d) the steady state can entertain both innovation and its absence.
File in questo prodotto:
File Dimensione Formato  
POPecon2012.pdf

non disponibili

Tipologia: Versione dell'editore
Licenza: Accesso chiuso-personale
Dimensione 512.4 kB
Formato Adobe PDF
512.4 kB Adobe PDF   Visualizza/Apri

I documenti in ARCA sono protetti da copyright e tutti i diritti sono riservati, salvo diversa indicazione.

Utilizza questo identificativo per citare o creare un link a questo documento: https://hdl.handle.net/10278/3751643
Citazioni
  • ???jsp.display-item.citation.pmc??? ND
  • Scopus 7
  • ???jsp.display-item.citation.isi??? 6
social impact