Is Gerontocracy Harmful for Growth? A Comparative Study of Seven European Countries

Vincenzo Atella and Lorenzo Carbonari

No 263, CEIS Research Paper from Tor Vergata University, CEIS

Abstract: We study the relationship between gerontocracy and aggregate economic performance in a simple model where growth is driven by human capital accumulation and productive government spending. We show that less patient lites display the tendency to underinvest in public education and productive government services, and thus are harmful for growth. The damage caused by gerontocracy is mainly due to the lack of long-term delayed return on investments, originated by the lower subjective discount factor. An empirical analysis using public investment in Information and Communication Technologies (ICT) is carried out to test theoretical predictions across different countries and different economic sectors. The econometric results confirm our main hypotheses.

Keywords: Gerontocracy; Economic Growth and Aggregate Productivity; Education; ICT. (search for similar items in EconPapers)
JEL-codes: J1 O4 (search for similar items in EconPapers)
Pages: 33 pages
Date: 2013-02-08, Revised 2017-05-11
New Economics Papers: this item is included in nep-age and nep-dem
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Citations: View citations in EconPapers (14)

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Journal Article: Is gerontocracy harmful for growth? A comparative study of seven European countries (2017)
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