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J Health Econ. 2006 May;25(3):555-78. Epub 2005 Nov 10.

Endogenous longevity, biological deterioration and economic growth.

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  • 1Departamento de Análisis Económico, Facultad de Ciencias Económicas y Empresariales, University of Zaragoza, C/ Gran Vía 2, 50005 Zaragoza, Spain.


The identification of the types of bidirectional interactions that take place between longevity and economic growth in the long-run is carried out by means of the integration of human capital accumulation, innovation in medical technology, a health goods sector, and individual decisions on health and longevity in a dynamic general equilibrium set-up. In this context, in which individual agents decide not only on their "quality" of life but also on its "quantity", the mere process of biological deterioration, that is to say, the continuous loss of health goods effectiveness in maintaining a given level of health as individuals age, provides the reason for an additional, and new, engine of growth.

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