Dynamic analysis of demographic change and human capital accumulation in an R&D-based growth model

Kohei Okada ()
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Kohei Okada: Osaka University

Journal of Economics, 2020, vol. 130, issue 3, No 1, 225-248

Abstract: Abstract Employing an overlapping-generations model of R&D-based growth with endogenous fertility, mortality, and education choice, we examine how demographic changes and human capital accumulation influence R&D activity. We show that multiple steady states can exist in this economy. One steady state has a high level of human capital and the other has a low level. In the steady state with high (low) level of human capital, there is a high (low) level of R&D activity, a low (high) fertility rate, and a high (low) old-age survival rate. In addition, we show that the government can steer an economy away from a poverty trap trajectory by investing in public health. We also show that an improvement in the government’s public health policy has an inverted U-shaped effect on the growth rate at the steady state.

Keywords: Demographic change; Human capital accumulation; R&D (search for similar items in EconPapers)
JEL-codes: I25 J10 O10 O30 (search for similar items in EconPapers)
Date: 2020
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Citations: View citations in EconPapers (5)

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Persistent link: https://EconPapers.repec.org/RePEc:kap:jeczfn:v:130:y:2020:i:3:d:10.1007_s00712-020-00692-x

DOI: 10.1007/s00712-020-00692-x

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