Public investment, life expectancy and income growth
by Minoru Watanabe; Masaya Yasuoka
African J. of Economic and Sustainable Development (AJESD), Vol. 6, No. 2/3, 2017

Abstract: Based on individual occupational choice in the model including a production function with public investment, this paper presents an examination of how public investment affects the dynamics. Individuals work as skilled labourers or unskilled labourers. As in the model described by Caselli (1999), educational costs are necessary to work as a skilled labourer. Results show that life expectancy determines whether income growth occurs or not. Public investment can bring about income growth if life expectancy is sufficiently high. However, with low life expectancy, the government cannot bring about income growth with an increase in public investment. Therefore, both public investment and life expectancy should be pulled up for income growth.

Online publication date: Mon, 26-Feb-2018

The full text of this article is only available to individual subscribers or to users at subscribing institutions.

 
Existing subscribers:
Go to Inderscience Online Journals to access the Full Text of this article.

Pay per view:
If you are not a subscriber and you just want to read the full contents of this article, buy online access here.

Complimentary Subscribers, Editors or Members of the Editorial Board of the African J. of Economic and Sustainable Development (AJESD):
Login with your Inderscience username and password:

Username:        Password:          Forgotten your password?

Want to subscribe?
A subscription gives you complete access to all articles in the current issue, as well as to all articles in the previous three years (where applicable). See our Orders page to subscribe.

If you still need assistance, please email subs@inderscience.com