Public health spending, old-age productivity and economic growth: chaotic cycles under perfect foresight

Luciano Fanti and Luca Gori ()

MPRA Paper from University Library of Munich, Germany

Abstract: This paper analyses the dynamics of a double Cobb-Douglas economy with overlapping generations and public health investments that affect the supply of efficient labour of the old-aged. It is shown that the positive steady state of the economy is unique. Moreover, we provide necessary and sufficient conditions for the emergence of endogenous deterministic complex cycles when individuals are perfect foresighted. Interestingly, the equilibrium dynamics shows rather complicated phenomena such as a multiplicity of period-bubbling.

Keywords: OLG model; Productivity; Perfect foresight; Public health expenditure (search for similar items in EconPapers)
JEL-codes: C62 I18 O41 (search for similar items in EconPapers)
Date: 2010-03-11
New Economics Papers: this item is included in nep-age, nep-dge and nep-hea
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4)

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Related works:
Journal Article: Public health spending, old-age productivity and economic growth: Chaotic cycles under perfect foresight (2011)
Journal Article: Public health spending, old-age productivity and economic growth: Chaotic cycles under perfect foresight (2011)
Working Paper: Public health spending; old-age productivity and economic growth: chaotic cycles under perfect foresight (2011)
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Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:21335

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