TY - JOUR
T1 - Longevity and technological change
AU - Gehringer, Agnieszka
AU - Prettner, Klaus
PY - 2019
Y1 - 2019
N2 - We analyze the impact of increasing longevity on technological progress within an overlapping generations research and development (R&D)-based growth framework and test the model's implication on Organization for Economic Co-operation and Development (OECD) data from 1960 to 2011. The central hypothesis is that—by raising the incentives of households to invest in physical capital and in R&D—decreasing mortality positively affects technological progress and productivity growth. The empirical results confirm the theoretical prediction. This implies that the demographic changes we observed in industrialized economies over the last decades were not detrimental to economic prosperity, at least as far as technological progress and productivity growth are concerned.
AB - We analyze the impact of increasing longevity on technological progress within an overlapping generations research and development (R&D)-based growth framework and test the model's implication on Organization for Economic Co-operation and Development (OECD) data from 1960 to 2011. The central hypothesis is that—by raising the incentives of households to invest in physical capital and in R&D—decreasing mortality positively affects technological progress and productivity growth. The empirical results confirm the theoretical prediction. This implies that the demographic changes we observed in industrialized economies over the last decades were not detrimental to economic prosperity, at least as far as technological progress and productivity growth are concerned.
UR - https://www.cambridge.org/core/journals/macroeconomic-dynamics/article/longevity-and-technological-change/9EF04E833F1E061EA9913651BCB04C8E
U2 - 10.1017/S1365100517000293
DO - 10.1017/S1365100517000293
M3 - Journal article
SN - 1365-1005
VL - 23
SP - 1471
EP - 1503
JO - Macroeconomic Dynamics
JF - Macroeconomic Dynamics
ER -