The Impact of Life Expectancy and Old-Age Dependency Rate on Economic Growth

• Main Authors: Chang-Yu Li, 李昌祐
• Other Authors: Fuhmei Wang
• Format: Others
• Language: zh-TW
• Published: 2008
• Online Access: http://ndltd.ncl.edu.tw/handle/44341114905147535263

碩士 === 國立成功大學 === 經濟學系碩博士班 === 96 === This paper examines the influence of increasing life expectancy and old-age dependency rate on growth. Earlier empirical studies demonstrated that social security had a significant impact on growth without considering old-age dependency rate. Recent studies have found that the old-age dependency rate significantly affects growth without considering social security. The first part of this paper constructs a growth model where agents with uncertain survival and investigates how life expectancy interacts with growth and growth determinants (saving and consumption). Then, we will elaborate how old-age dependency rate and social security interact with growth and growth determinants (saving and human capital investment) under the consideration of both old-age dependency rate and social security in growth model. In panel data analysis, utilizing data from World Bank, Organization for Economic Co-operation and Development, and U.S Census Bureau datasets, we develop a biased-corrected estimation in a dynamic framework and estimate this framework with system GMM estimators. The empirical evidence shows that life expectancy and social security have significant positive effects on growth while old-age dependency rate has a significant negative effect on growth.