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Longevity, Human Capital and Domestic Investment

Francisco Parro, Francisco Szederkenyi and Patricio Valenzuela

No 331, Documentos de Trabajo from Centro de Economía Aplicada, Universidad de Chile

Abstract: This article explores the interaction between aggregate initial human capital, life expectancy and domestic investment. The article introduces a simple model that predicts that the positive effect of life expectancy on the domestic investment rate is mitigated in economies with a higher level of initial human capital. Using a large panel of countries over the past five decades, the article presents empirical evidence consistent with the main prediction of the model. JEL Classification: E22; I15; J11; J24. Key words: Keywords: Domestic investment; Life expectancy; Human capital.

Date: 2017
New Economics Papers: this item is included in nep-age
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