Endogenous longevity, biological deterioration and economic growth

Area of Science:

• Economics
• Demography
• Health Economics

Background:

• Economic growth is often studied independently of demographic factors.
• The interplay between human capital, health, and economic outcomes requires further investigation.
• Individual decisions regarding health and lifespan are crucial for long-term economic dynamics.

Purpose of the Study:

• To identify the bidirectional interactions between longevity and long-run economic growth.
• To incorporate human capital, medical technology, health goods, and individual health decisions into a unified economic model.
• To understand how biological aging processes can drive economic growth.

Main Methods:

• A dynamic general equilibrium framework is employed.
• The model integrates human capital accumulation and innovation in medical technology.
• Individual choices on health quality and quantity (longevity) are central to the model.

Main Results:

• The study identifies key mechanisms linking longevity and economic growth.
• Innovation in medical technology and the health goods sector are shown to be significant drivers.
• The process of biological deterioration itself acts as a novel engine for economic growth.

Conclusions:

• Longevity and economic growth are intrinsically linked through human capital and technological advancements.
• Individual decisions about health and lifespan have profound macroeconomic implications.
• The aging process, through its impact on health and the demand for health goods, can stimulate economic growth.