Journal of Population Economics

, Volume 23, Issue 2, pp 571–593

Population aging, health care, and growth

Original Paper

DOI: 10.1007/s00148-008-0216-5

Cite this article as:
Hashimoto, K. & Tabata, K. J Popul Econ (2010) 23: 571. doi:10.1007/s00148-008-0216-5

Abstract

This paper constructs a small open two-sector (health care and non-health care) overlapping generations model and investigates how changes in the demand for health care induced by population aging influence the economy’s employment structure and per capita income growth rate. We show that population aging induces a shift in labor from the non-health care sector to the health care sector and lowers the per capita income growth rate. This paper also investigates public policy for child care and demonstrates the existence of an intergenerational conflict between current and future generations concerning public policy on child care.

Keywords

Population aging Costs of health care for the elderly Child care subsidy 

JEL Classification

O41 J13 J14 

Copyright information

© Springer-Verlag 2008

Authors and Affiliations

  1. 1.Graduate School of EconomicsKobe UniversityKobeJapan
  2. 2.Department of Foreign StudiesKobe City University of Foreign StudiesKobeJapan

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