Untimely destruction: pestilence, war and accumulation in the long run
This paper analyses the effects of disease and war on the accumulation of human and physical capital. We employ an overlapping-generations frame-work in which young adults, confronted with such hazards and motivated by old-age provision and altruism, make decisions about investments in schooling and...
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| Hauptverfasser: | , , |
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| Dokumenttyp: | Book/Monograph Arbeitspapier |
| Sprache: | Englisch |
| Veröffentlicht: |
Bonn, Germany
IZA - Institute of Labor Economics
October 2019
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| Schriftenreihe: | Discussion paper series / IZA
no. 12680 |
| In: |
Discussion paper series (no. 12680)
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| Schlagworte: | |
| Online-Zugang: | Verlag, kostenfrei: https://www.iza.org/publications/dp/12680/untimely-destruction-pestilence-war-and-accumulation-in-the-long-run Verlag, kostenfrei: http://ftp.iza.org/dp12680.pdf Resolving-System, kostenfrei: http://hdl.handle.net/10419/207504 
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| Verfasserangaben: | Clive Bell, Hans Gersbach, Evgenij Komarov |
| Zusammenfassung: | This paper analyses the effects of disease and war on the accumulation of human and physical capital. We employ an overlapping-generations frame-work in which young adults, confronted with such hazards and motivated by old-age provision and altruism, make decisions about investments in schooling and reproducible capital. A poverty trap exists for a wide range of stationary war losses and premature adult mortality. If parents are altruistic and their sub-utility function for own consumption is more concave than that for the children's human capital, the only possible steady-state growth path involves full education. Otherwise, steady-state paths with incompletely educated children may exist, some of them stationary ones. We also examine, analytically and with numerical examples, a growing economy's robustness in a stochastic environment. The initial boundary conditions have a strong influence on outcomes in response to a limited sequence of destructive shocks. |
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| Beschreibung: | Online Resource |