Munich Personal RePEc Archive

Endogenous lifetime, intergenerational mobility and economic development

Aso, Hiroki (2020): Endogenous lifetime, intergenerational mobility and economic development.

There is a more recent version of this item available.
[thumbnail of MPRA_paper_106110.pdf]

Download (719kB) | Preview


This paper analyzes the interactions among lifetime, intergenerational mobility and economic development in overlapping generations framework. In addition, we explain the mechanism that causes two motions of intergenerational mobility, monotonous motion and cyclical motion, which are observed in empirical studies. We show that these motions of mobility depend crucially on lifetime. We assume that lifetime increases through health effect with economic development. Increasing lifetime encourages incentives of education investment while decreasing transfer, which is the funding source for education. If lifetime slowly increases sufficiently, mobility monotonically increases while income inequality decreases. However, if lifetime increases rapidly with economic development, the economy exhibits cyclical and even chaotic behavior. Even if we consider that differential lifetime between the educated and the uneducated, we get two motions of mobility: monotonous and cyclical motion.

Available Versions of this Item

Atom RSS 1.0 RSS 2.0

Contact us: mpra@ub.uni-muenchen.de

This repository has been built using EPrints software.

MPRA is a RePEc service hosted by Logo of the University Library LMU Munich.