(2011) The Long-Run Effects of Mortality Decline in Developing Countries. IZA Discussion Paper No 5422. (co-authored with Ulla Lehmijoki)

Posted on by Palokangas Tapio K

Since World War II, mortality has declined in the developing world. This paper examines the effects of this mortality decline on demographic and economic growth by a familyoptimization model, in which fertility is endogenous and wealth yields utility through its status. The decline in mortality stimulates investment and generates an income stream which promotes population growth, but the desire of status hampers fertility and prevents capitaldiluting demographic expansion. If status-seeking is strong, then the decline of mortality decreases population growth below its original level.

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Presented in:

  1. Nordic Conference in Development Economics (NCDE), June 18-19, 2010, in the Helsinki Center of Economic Research (HECER), Finland (presenter: Tapio Palokangas)
  2. The 15th Conference on Dynamics, Growth, and International Trade (DEGIT), September 3-4, 2010, Frankfurt am Main, Germany (presenter: Ulla Lehmijoki).