Atella, Vincenzo and Carbonari, Lorenzo (2012): When elders rule: is gerontocracy harmful for growth?
Download (673Kb) | Preview
We study the relationship between gerontocracy and aggregate economic perfomance in a simple model where growth is driven by human capital accumulation and productive government spending. We show that gerontocratic élites display the tendency to underinvest in public education and productive government services and thereby may be harmful growth. In absence of intergenerational altruism, the damage caused by gerontocracy is mainly due to the lack in long-term delayed-return investment originated by the shorter life horizon of the ruling class with respect to the rest of the population. An empirical analysis is carried out on a rich data set that al lows to test theoretical results across diﬀerent countries and diﬀerent sectors. The econometric results conﬁrm our main hypotheses.
|Item Type:||MPRA Paper|
|Original Title:||When elders rule: is gerontocracy harmful for growth?|
|Keywords:||Gerontocracy, Economic Growth and Aggregate Productivity|
|Subjects:||J - Labor and Demographic Economics > J1 - Demographic Economics
O - Economic Development, Technological Change, and Growth > O4 - Economic Growth and Aggregate Productivity
|Depositing User:||Lorenzo Carbonari|
|Date Deposited:||03. Mar 2012 10:12|
|Last Modified:||12. Feb 2013 17:56|
Acemoglu, D., and Robinson, J., 2006, Economic Backwardness in Political Perspective, American Political Science Review, vol. 100(1).
Alesina, A. and D. Rodrik, 1994, Distributive Politics and Economic Growth, Quarterly Journal of Economics, CIX, 465-90.
Barro, R., 1990, Government spending a simple model of endogenous growth, Journal of Political Economy, vol. 98, pp. 103-125.
Barro, R., and Sala-i-Martin, X., 1992, Public ﬁnance in models of economic growth, Review of Economic Studies, vol. 59, pp. 645-661.
Barro, R., and Sala-i-Martin, 1995, Economic Growth, McGraw-Hill, Inc.
Bassanini, A., and Duval, R., 2009., Unemployment, institutions, and reform comple- mentarities: re-assessing the aggregate evidence for OECD countries, Oxford Review of Economic Policy, vol. 25(1), pp. 40-59.
Bellettini, G., Ceroni, C., Prarolo, G., 2009, Political Persistence, Connections and Eco- nomic Growth, mimeo.
Blanchard, O., 2004, The Economic Future of Europe. Journal of Economic Perspectives, vol. 18(4), pp. 3-26.
Boucekkine, R., de la Croix, D., Licandro, O., 2002, Vintage Human Capital, Demograph- ics Trends, and ebdogenous Growth, Journal of Economic Theory, vol.104, pp.340-375.
Brunetti. A., 1997, Political variables in cross-country growth analysis, Journal of Eco- nomic Surveys, vol. 11(2), pp. 163-190.
Carboni, C., 2007, Elite e Classi dirigenti in Italia, Editori Laterza.
Caselli, F., and Morelli, M., 2004, Bad Politicians, Journal of Public Economcs, vol.88(3- 4), pp. 759-782.
Chari, V.V., and Hopenhayn, H., Vintage Human Capital, 1991, Growth, and the Diﬀu- sion of New Technology, The Journal of Political Economy, vol. 99(6), pp. 1142-1165.
Daveri, F., and Maliranta, M., 2007, Age, Seniority and Labour Costs; lessons from the ﬁnnish IT revolution, Economic Policy, vol. 49(22), pp. 117-175.
Fernandez, R., and Rodrik, D., 1991, Resistance to reform: status quo bias in presence of individual speciﬁc uncertainty, American Economic Reviwe, vol. 81(5), pp. 1146-55.
Gordon, R.J., 2004, Why was Europe left at the station when America’s productivity locomotive departed?, NBER Working Paper, n. 10661, National Bureau of Economic Research, Cambridge (MA).
Glomm, G., and Ravikumar, B., 1997, Productive government expenditure and long-run growth, Journal of Economics Dynamics and Control, vol. 21, pp. 183-2004.
Hashimzade, N., and Davis, G., 2006, Human capital and growth under political uncer- tainty, Economics Bul letin, vo. 15(1), pp. 1-9.
Hopenhayn, H., and, Muniagurria, 1996, Policy variability and economic growth, Review of Economic Studies, 63, pp. 611-625.
Kaas, L., 2003, Governernment spending, growth and sequential voting, European Jour- nal of Political Economy, vol. 19, pp. 227-246.
Krusell, P., Rios-Rull, J.-V., 1999, On the size of U.S. government: political economy in the neoclassical growth model, American Economic Review 89, pp. 1156-1181.
Krusell, P., Quadrini, V., Rios-Rull, J.-V., 1997, Politico-economic equilibrium and eco- nomic growth, Journal of Economic Dynamics and Control 21, pp. 243-272.
Mattozzi, A., and Merlo, A., 2007, Mediocracy,NBER Working Paper, n. W12920, Na- tional Bureau of Economic Research, Cambridge (MA).
Messner, M., and Polborn, M., 2004, Voting on Ma jority Rules, Review of Economic Studies, vol. 71(1), pp. 115-132.
Nicoletti, G., Scarpetta, S., and Boylaud, O., 2000, Summary Indicators of Product Market Regulation with an Extension to Employment Protection Legislation, OECD Eco- nomics Department Working Papers, n. 226, OECD, Economics Department. OECD, 2004, The Sources of Economic Growth in OECD Countries, Paris, France.
Tabaka F., and Barr, S.H., 1999, Propensity to adopt technological innovations: the impact of personal characteristics and organizational context, Journal of Engineering and Technology Management, vol. 16(3-4), pp. 247-270.
Persson, T., and Tabellini, G., 1994, Is Inequality Harmful for Growth?, American Eco- nomic Review, vol. 84(3), pp. 600-621.
van Ark, B., Mahoney, M., and Timmer, M., 2008, The Productivity Gap between Europe and the United States: Trends and Causes, Journal of Economic Perspectives, vol. 22, pp. 25-44.
Zellner, A., 1962, An eﬃcient method of estimating seemingly unrelated regressions and tests for aggregation bias, Journal of the American Statistical Association, vol. 57(298), pp. 348-368.
Zellner, A. and Huang, D.S., 1962, Further properties of eﬃcient estimators for seemingly unrelated regression equations, International Economic Review, vol. 3(3), pp. 300-313.
Zellner, A., 1963, Estimators for seemingly unrelated regression equations: some exact ﬁnite sample results, Journal of the American Statistical Association, vol. 58(304), pp. 977-992.
Available Versions of this Item
When elders rule: is gerontocracy harmful for growth? (deposited 12. Feb 2012 05:08)
- When elders rule: is gerontocracy harmful for growth? (deposited 03. Mar 2012 10:12) [Currently Displayed]