A Politico-Economic Model of Aging, Technology Adoption and Growth

Posted: 22 Nov 2015

See all articles by Francesco Lancia

Francesco Lancia

University of Salerno; Centre for Economic Policy Research (CEPR); University of Naples Federico II - CSEF - Center for Studies in Economics and Finance

Giovanni Prarolo

University of Bologna; University of Milan - Centro Studi Luca d'Agliano (LdA)

Multiple version iconThere are 2 versions of this paper

Date Written: July 1, 2012

Abstract

Over the past century, all OECD countries have been characterized by a dramatic increase in economic conditions, life expectancy and educational 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 different economic roles characterized by different 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 different incentives of individuals and different schemes of political aggregation of preferences. The model produces multiple development regimes associated with different predictions about life expectancy evolution, educational investment dynamics, and technology adoption policies. Transitions between these regimes depend on initial conditions and parameter values.

Keywords: life expectancy, systemic innovation, majority voting

JEL Classification: D70, J10, O31

Suggested Citation

Lancia, Francesco and Prarolo, Giovanni, A Politico-Economic Model of Aging, Technology Adoption and Growth (July 1, 2012). Journal of Population Economics, Vol. 25, No. 3, 2012, Available at SSRN: https://ssrn.com/abstract=2693977

Francesco Lancia (Contact Author)

University of Salerno ( email )

Via Giovanni Paolo II, 132
Fisciano, Salerno 84084
Italy

Centre for Economic Policy Research (CEPR) ( email )

London
United Kingdom

University of Naples Federico II - CSEF - Center for Studies in Economics and Finance ( email )

Via Cintia
Complesso Monte S. Angelo
Naples, Naples 80126
Italy

Giovanni Prarolo

University of Bologna ( email )

Piazza Scaravilli 2
Bologna, 40100
Italy

HOME PAGE: http://www2.dse.unibo.it/prarolo/

University of Milan - Centro Studi Luca d'Agliano (LdA) ( email )

Via P. Amedeo 34
Milano, Mi 20122
Italy

Here is the Coronavirus
related research on SSRN

Paper statistics

Abstract Views
212
PlumX Metrics