Schneider, Maik T.
- Working Paper
Rights / licenseIn Copyright - Non-Commercial Use Permitted
We develop a perpetual youth model to investigate how longevity affects economic growth and welfare. Life expectancy is determined by individuals’ investments in healthcare. We find that improvements in the healthcare technology always increase the steady state growth rate. Although the effect is small, even for large increases in longevity, welfare gains may be substantial depending on the type of the technological improvement. We identify two externalities associated with healthcare investments and provide a condition when healthcare expenditures are inefficiently low in the market equilibrium. Finally, we discuss our results with respect to alternative spillover specifications in the production sector Show more
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Journal / seriesEconomics Working Paper Series
PublisherCER-ETH - Center of Economic Research at ETH Zurich
SubjectGESUNDHEITSÖKONOMIE + GESUNDHEITSAUSGABEN; HEALTH ECONOMY + HEALTH COSTS; LONGEVITY (ANATOMY AND PHYSIOLOGY); EXTERNE EFFEKTE; Healthcare expenditures; LIFE EXPECTANCY (HEALTH AND HYGIENE); Economic growth; WOHLFAHRTSÖKONOMIK; LEBENSERWARTUNG (HYGIENE UND GESUNDHEIT); Quality-quantity trade-off; WELFARE ECONOMICS; EXTERNALITIES; Healthcare technology; Endogenous longevity; ECONOMIC GROWTH; LANGLEBIGKEIT (ANATOMIE UND PHYSIOLOGIE); WIRTSCHAFTSWACHSTUM
Organisational unit02045 - Dep. Geistes-, Sozial- u. Staatswiss. / Dep. of Humanities, Social and Pol.Sc.
03729 - Gersbach, Hans / Gersbach, Hans
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