Human Capital Inequality, Life Expectancy and Economic Growth

Castelló‐Climent, Amparo; Doménech, Rafael

doi:10.1111/j.1468-0297.2008.02136.x

Cited by 94 publications

(55 citation statements)

References 77 publications

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“…For tractability reasons, let us consider the following explicit function for life expectancy that satisfies usual properties (see for instance Blackburn and Cipriani 2002;Cervellati and Sunde 2005;Chakraborty 2004;Castelló-Climent and Doménech 2008;Palivos and Varvarigos 2015):…”

Section: Householdsmentioning

confidence: 99%

The Cost of Pollution on Longevity, Welfare and Economic Stability

Ran

Seegmuller

2016

Environ Resource Econ

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This paper presents an overlapping generations model where pollution, private and public health expenditures are all determinants of longevity. Public expenditures, financed through labour taxation, provide both public health and abatement. We study the role of these three components of longevity on welfare and economic stability. At the steady state, we show that an appropriate fiscal policy may enhance welfare. However, when pollution is heavily harmful for longevity, the economy might experience aggregate instability or endogenous cycles. Nonetheless, a fiscal policy, which raises the share of public spending devoted to health, may display stabilizing virtues and rule out cycles. This allows us to recommend the design of the public policy that may comply with the dynamic and welfare objectives.

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Section: Householdsmentioning

confidence: 99%

The Cost of Pollution on Longevity, Welfare and Economic Stability

Ran

Seegmuller

2016

Environ Resource Econ

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“…with τ 1 the tax rate that finances public health expenditures and τ 2 the one which allows for environmental maintenance 5 and R t+1 is the gross return on investment. Note that following Chakraborty (2004) or Varvarigos (2009) among the others, we assume a perfect annuity market.…”

Section: Householdsmentioning

confidence: 99%

Longevity, pollution and growth

Raffin

Seegmuller

2014

Mathematical Social Sciences

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We analyze the interplay between longevity, pollution and growth. We develop an OLG model where longevity, pollution and growth are endogenous. The authorities may provide two types of public services, public health and environmental maintenance, that participate to increase agents' life expectancy and to sustain growth in the long term. We show that global dynamics might be featured by a high growth rate equilibrium, associated with longer life expectancy and a environmental poverty trap. We examine changes in public policies: increasing public intervention on health or environmental maintenance display opposite effects on global dynamics, i.e. on the size of the trap and on the level of the stable balanced growth path. On the contrary, each type of public policy induces a negative leverage on the long run rate of growth.

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“…From a theoretical perspective, the latest advances in the literature have pointed to human capital inequality and its influence on demographic variables as alternative channels that predict a negative relationship between inequality and growth. Castelló-Climent and Doménech [20] examine how human capital inequality may discourage growth by reducing life expectancy and investment in education, rather than by increasing fertility, as in De la Croix and Doepke [21] and Moav [38]. Furthermore, the role of human capital inequality in economic growth is part of most of the models that analyze the effect of inequality on growth under imperfect credit markets (e.g., [29,39]).…”

Section: Introductionmentioning

confidence: 97%