Growth and inequality: a demographicexplanation
STICERD - Distributional Analysis Research Programme Papers from Suntory and Toyota International Centres for Economics and Related Disciplines, LSE
Abstract This paper investigates the relationship between growth and inequality froma demographic point of view. In an extended model of the accidental bequest withendogenous fertility, we analyze the effects of a decrease in old-age mortality rate onthe equilibrium growth rate as well as on the income distribution. We show that therelationship between growth and inequality is at first positive and then may benegative in the process of population aging. The results are consistent with theempirical evidence in some developed countries.
Keywords: Inequality; Growth; Fertility; Accidental bequest. (search for similar items in EconPapers)
JEL-codes: D31 J13 O41 (search for similar items in EconPapers)
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Persistent link: https://EconPapers.repec.org/RePEc:cep:stidar:87
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