Ageing, human capital and demographic dividends with endogenous growth, labour supply and foreign capital
Anne Edle von Gaessler and
Thomas Ziesemer ()
No 43, MERIT Working Papers from United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT)
We modify a Lucas-type endogenous growth model to contain endogenous labour supply, imperfect international capital movements, and estimated interest and education time functions. Solutions based on realistic calibrations show that (i) the rate of human capital depreciation through ageing has a much stronger negative impact on growth than further changes in the population growth rate or the Frisch elasticity of labour supply; (ii) a higher rate of human capital depreciation, a higher growth rate of the dependency ratio, and lower past cumulated savings all go together with a higher second-best education time and higher growth; (iii) demographic dividends are positive in the short run but negative in the long run.
Keywords: Ageing; human capital; endogenous growth; open economy; serendipity theorem (search for similar items in EconPapers)
JEL-codes: F43 J11 J24 O11 O33 O41 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-age, nep-dge and nep-gro
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Persistent link: https://EconPapers.repec.org/RePEc:unm:unumer:2017043
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