Childrens health, human capital accumulation, and R&D-based economic growth

We analyze the effects of childrens health on human capital accumulation and on long-run economic growth. For this purpose we design an R&D-based growth model in which the stock of human capital of the next generation is determined by parental education and health investments. We show that i) there is a complementarity between education and health: if parents want to have better educated children, they also raise health investments and vice versa; ii) parental health investments exert an unambiguously positive effect on long-run economic growth, iii) faster population growth reduces long-run economic growth. These results are consistent with the empirical evidence for modern economies in the twentieth century

Longevity-induced vertical innovation and the tradeoff between life and growth

We analyze the economic growth effects of rising longevity in a framework of endogenous growth driven by quality-improving innovations. We show that a rise in longevity raises savings and thereby reduces the market interest rate. Since the monopoly profits generated by a successful innovation are discounted by the endogenous market interest rate, this raises the net present value of innovations, which, in turn, fosters R&D. The associated increase in the employment of scientists leads to faster technological progress and a higher long-run economic growth rate. From a welfare perspective, we show that the direct effect of an increase in life expectancy on lifetime utility is much larger than the indirect effect of the induced higher consumption due to faster economic growth. Consequently, the debate on rising health care expenditures should not predominantly be based on the growth effects of health care

Political Behaviour: an Economic Investigation

Economists have widely investigated the framework of politics and politicians, its mechanisms and its results. We collect some works, both theoretical and empirical, that describe some typical behaviour of politicians. In particular we focus on the following topics: political accountability, through the electoral systems and the role of citizens, the function of bureaucracy, the issue of multitasking. Finally we present a dynamic model that focuses on the degree of trust among voters