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Environmental quality, life expectancy, and sustainable economic growth

By Dimitrios Varvarigos


I construct a model of a growing economy with pollution. The analysis of the\ud model shows that the interactions between capital accumulation, endogenous\ud longevity and environmental quality determine both the long-run growth rate of the\ud economy and the pattern of convergence (i.e., monotonic or cyclical) towards the\ud balanced growth path. I argue that such interactions can provide a possible\ud explanatory factor behind the, empirically observed, negative correlation of longrun\ud growth with its short-term cycles. Furthermore, the model may capture the\ud observed pattern whereby economic growth and mortality rates appear to be\ud negatively related in the long-run, but positively related in the short-run

Topics: Environmental quality, longevity, economic growth, cycles
Publisher: Dept. of Economics, University of Leicester
Year: 2008
OAI identifier: oai:lra.le.ac.uk:2381/7522

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