Authors
Sebnem Kalemli-Ozcan, Harl E Ryder, David N Weil
Publication date
2000/6/1
Journal
Journal of development economics
Volume
62
Issue
1
Pages
1-23
Publisher
North-Holland
Description
We examine the role of increased life expectancy in raising human capital investment during the process of economic growth. We develop a continuous time, overlapping generations model in which individuals make optimal schooling investment choices in the face of a constant probability of death. We present analytic results, followed by results from a calibrated version of the model using realistic estimates of the return to schooling. Mortality decline produces economically significant increases in schooling and consumption. Allowing schooling to vary endogenously produces a much larger response of consumption and capital to mortality decline than is observed when schooling is held fixed.
Total citations
Scholar articles
S Kalemli-Ozcan, HE Ryder, DN Weil - Journal of development economics, 2000