Lancia, Francesco ;
Prarolo, Giovanni
(2007)
A Politico-Economic Model of Aging, Technology Adoption and Growth.
Bologna:
Dipartimento di Scienze economiche DSE,
p. 21.
DOI
10.6092/unibo/amsacta/4693.
In: Quaderni - Working Paper DSE
(590).
ISSN 2282-6483.
Full text available as:
Abstract
Over the past century, all OECD countries have been characterized
by a dramatic increase in economic conditions, life expectancy and edu-
cational attainment. This paper provides a positive theory that explains
how an economy might evolve when the longevity of its citizens both influences and is influenced by the process of economic development. We
propose a three periods OLG model where agents, during their lifetime,
cover di¤erent economic roles characterized by di¤erent incentive schemes
and time horizon. Agents' decisions embrace two dimensions: the private
choice about education and the public one upon innovation policy. The
theory focuses on the crucial role played by heterogeneous interests in
determining innovation policies, which are one of the keys to the growth
process: the economy can be discontinuously innovation-oriented due to
the di¤erent incentives of individuals and di¤erent schemes of political
aggregation of preferences. The model produces multiple development
regimes associated with di¤erent predictions about life expectancy evolu-
tion, educational investment dynamics, and technology adoption policies.
Transitions between these regimes depend on initial conditions and parameter values.
Abstract
Over the past century, all OECD countries have been characterized
by a dramatic increase in economic conditions, life expectancy and edu-
cational attainment. This paper provides a positive theory that explains
how an economy might evolve when the longevity of its citizens both influences and is influenced by the process of economic development. We
propose a three periods OLG model where agents, during their lifetime,
cover di¤erent economic roles characterized by di¤erent incentive schemes
and time horizon. Agents' decisions embrace two dimensions: the private
choice about education and the public one upon innovation policy. The
theory focuses on the crucial role played by heterogeneous interests in
determining innovation policies, which are one of the keys to the growth
process: the economy can be discontinuously innovation-oriented due to
the di¤erent incentives of individuals and di¤erent schemes of political
aggregation of preferences. The model produces multiple development
regimes associated with di¤erent predictions about life expectancy evolu-
tion, educational investment dynamics, and technology adoption policies.
Transitions between these regimes depend on initial conditions and parameter values.
Document type
Monograph
(Working Paper)
Creators
Keywords
growth, life expectancy, human capital, systemic innova-
tion, majority voting.
Subjects
ISSN
2282-6483
DOI
Deposit date
26 Feb 2016 11:17
Last modified
26 Feb 2016 11:18
URI
Other metadata
Document type
Monograph
(Working Paper)
Creators
Keywords
growth, life expectancy, human capital, systemic innova-
tion, majority voting.
Subjects
ISSN
2282-6483
DOI
Deposit date
26 Feb 2016 11:17
Last modified
26 Feb 2016 11:18
URI
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