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Rosa Aísa and Fernando Pueyo
''Endogenous longevity, health and economic growth: a slow growth for a longer life?''
( 2004, Vol. 9 No.3 )
We establish a theoretical set-up that is able to endogenously integrate growth and longevity. Our model captures three links between them: a longer life expectancy results in an increase in savings as well as an increase in the workforce, but health and growth compete for resources. We find that the key element is the response of longevity to an increase in health resources. Our model suggests that the first two links could be the most important in poor countries, which could explain their experience of simultaneous increases in growth and life expectancy. The reverse result may apply for developed countries.
Keywords: Government Spending
JEL: I1 - Health: General
O1 - Economic Development: General
Manuscript Received : Apr 22 2004 Manuscript Accepted : Jul 09 2004

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