Endogenous lifetime in an overlapping generations small open economy
Luciano Fanti () and
Luca Gori ()
Discussion Papers from Dipartimento di Economia e Management (DEM), University of Pisa, Pisa, Italy
Using a simple overlapping generations small open economy, we show that endogenous longevity - through public health expenditure - may reduce both the saving rate and per capita domestic income, while increasing the per capita foreign debt in a country. Moreover, despite funding public health capital is always beneficial for life expectancy, it may or may not represent a Pareto improvement with respect to the laissez-faire solution depending on whether the world interest rate is high or low enough, respectively.
Keywords: Health; Life expectancy; OLG model; Small open economy. (search for similar items in EconPapers)
JEL-codes: I18 O41 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-dge, nep-hap and nep-hea
Note: ISSN 2039-1854
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Journal Article: Endogenous Lifetime in an Overlapping-Generations Small Open Economy (2012)
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Persistent link: https://EconPapers.repec.org/RePEc:pie:dsedps:2009/92
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