Article
Endogenous Lifetime and Economic Growth Revisited
Economics Bulletin
Document Type
Article
Disciplines
Publication Version
Published Version
Publication Date
1-1-2004
Abstract
Chakraborty [Journal of Economic Theory, 2004] introduces endogenous mortality in a two period overlapping generations model by postulating that the probability of surviving from the first period to the second depends on tax−funded public health. His central result on the existence of multiple steady states (including development traps) summarized in Proposition 1 is incorrect. This paper presents the correct proposition and its proof, and in the process, uncovers several new, interesting results. Contrary to Chakraborty's analysis, high mortality yet high capital nations may not be able to escape the poverty trap. Interestingly, TFP growth can help economies escape the vicious cycle of poverty.
Copyright Owner
Economics Bulletin
Copyright Date
2004
Language
en
File Format
application/pdf
Citation Information
Helle Bunzel and Xue Qiao. "Endogenous Lifetime and Economic Growth Revisited" Economics Bulletin Vol. 15 Iss. 8 (2004) p. 1 - 8 Available at: http://works.bepress.com/helle-bunzel/11/
This is an article from Economics Bulletin 15 (2004): 1. Posted with permission.