Fanti, Luciano and Gori, Luca (2011): An OLG model of growth with longevity: when grandparents take care of grandchildren.
Download (74kB) | Preview
By assuming that grandparents take care of grandchildren, in this paper we aim at studying the effects of longevity on economic growth in the basic OLG model with endogenous fertility. We show that a rise in longevity can actually reduce long-run growth. Moreover, we also find that an increasing longevity (i) increases the supply of labour by the young parents, and (ii) causes fertility either to increase of decrease depending on the size of the grandparental child rearing time.
|Item Type:||MPRA Paper|
|Original Title:||An OLG model of growth with longevity: when grandparents take care of grandchildren|
|English Title:||An OLG model of growth with longevity: when grandparents take care of grandchildren|
|Keywords:||Longevity; OLG model|
|Subjects:||J - Labor and Demographic Economics > J1 - Demographic Economics > J13 - Fertility; Family Planning; Child Care; Children; Youth
O - Economic Development, Technological Change, and Growth > O4 - Economic Growth and Aggregate Productivity > O41 - One, Two, and Multisector Growth Models
J - Labor and Demographic Economics > J2 - Demand and Supply of Labor > J22 - Time Allocation and Labor Supply
|Depositing User:||Luca Gori|
|Date Deposited:||28. May 2011 19:05|
|Last Modified:||18. Feb 2013 19:32|
Abel, A., 1985. Precautionary savings and accidental bequests. American Economic Review 75, 777–791.
Apps, P., Rees R., 2004. Fertility, taxation and family policy. Scandinavian Journal of Economics 106, 745–763.
Barro, R.J., Sala-i-Martin, X., 2004. Economic Growth. Second Edition. Massachusetts, MA: MIT Press.
Blackburn, K., Cipriani, G.P., 2002. A model of longevity, fertility and growth. Journal of Economic Dynamics and Control 26, 187–204.
Diamond, P.A., 1965. National debt in a neoclassical growth model. American Economic Review 55, 1126–1150.
Eckstein, Z., Wolpin, K.I., 1985. Endogenous fertility and optimal population size. Journal of Public Economics 27, 93–106.
Eckstein, Z., Stern, S., Wolpin, K.I., 1988. Fertility choice, land, and the Malthusian hypothesis. International Economic Review 29, 353–361.
Ehrlich, I., Lui, F.T., 1991. Intergenerational trade, longevity, and economic growth. Journal of Political Economy 99, 1029–1059.
Galor, O., Weil, D.N., 1996. The gender gap, fertility, and growth. American Economic Review 86, 374–387.
Gollin, D., 2002. Getting income shares right. Journal of Political Economy 110, 458–474.
Hank, K., Buber, I., 2009. Grandparents caring for their grandchildren: findings from the 2004 survey of health, ageing, and retirement in Europe. Journal of Family Issues 30, 53–73.
Hayslip, B. Jr., Kaminski, P.L., 2005. Grandparents raising their grandchildren: a review of the literature and suggestions for practice. Gerontologist 45, 262–269.
ISFOL (2011). Occupazione e maternità: modelli territoriali e forme di compatibilità. Roma: Istituto per lo Sviluppo della Formazione Professionale dei Lavoratori. I Libri del Fondo Sociale Europeo, 148.
Kelley, A., Schmidt, R., 1995. Aggregate population and economic growth correlations: the role of the components of demographic change. Demography 32, 543– 555.
Kehoe, P.J., Perri, F., 2002. International business cycles with endogenous incomplete markets. Econometrica 70, 907–928.
Livi-Bacci, M., 2006. A Concise History of World Population. Forth Edition. Malden, MA: Wiley-Blackwell.
Maddison, A., 1992. A long-run perspective on savings. Scandinavian Journal of Economics 94, 181–196.
Mincer, J., 1963. Market prices, opportunity costs, and income effects. In: Christ, C.F. (Ed.), Measurement in Economics: Studies in Mathematical Economics and Econometrics in Memory of Yehuda Grunfeld. Stanford, CA: Stanford University Press.
Minkler, M., Fuller-Thomson, E., 1999. The health of grandparents raising grandchildren: results of a national study. American Journal of Public Health 89, 1384–1389.
Morand, O.F., 1999. Endogenous fertility, income distribution, and growth. Journal of Economic Growth 4, 331–349.
Sinn, H.W., 2007. Introduction to: Europe and the demographic challenge. CESifo Forum 8, 7–11.
Zhang, J., Zhang, J., 1998. Social security, intergenerational transfers, and endogenous growth. Canadian Journal of Economics 31, 1225–1241.
Zhang, J., Zhang, J., Lee, R., 2001. Mortality decline and long-run economic growth. Journal of Public Economics 80, 485–507.
Zhang, J., Zhang, J., Lee, R., 2003. Rising longevity, education, savings, and growth. Journal of Development Economics 70, 83–101.