This paper constructs a small open two-sector overlapping-generations model with the subsistence level of consumption of agricultural goods and explains the following key stylized facts in the process of economic development: increases followed by declines in fertility rate, increases in human...

This paper examines how pay-as-you-go (PAYG) pension reform from a defined-benefit scheme to a defined-contribution scheme affects economic growth in an overlapping generations model with endogenous growth. We show that in economies in which the old-age dependency ratio is relatively high and...

This paper constructs a simple Malthusian model to explain per capita income differences in the Malthusian era by focusing on regional variations in the expansion of the commercial sector. This paper shows that a larger productivity improvement in the skilled intensive commercial sector relative...

This paper studies the role played by the social norms of working hours in a household labor- leisure and fertility decision model. We suppose that social norms enforce workers not to deviate from the ideal level of working hours, which depends on past and current observations of working hours...

This paper examines how parallel importation influences pharmaceutical innovation and the welfare of the economy, when crossnational drug price differentials occur not only because of demand elasticity based factors, but also governmental drug price control based factors. By explicitly...

We consider a model with two countries in which each government redistributes income between two types of individuals (the rich and the poor). This model shows that an increase in the mobility of individuals induces intensive tax competition across countries and lowers the level of...

This paper examines how demographics affect economic growth in an OLG model with unfunded social security. We derive two interesting results. First, the relationship between population growth and per capita output growth is hump shaped. Second, the relationship between life expectancy and per...

Empirical studies show that the fertility rate (mortality rate) exhibits an inverted u-shaped dynamic in some countries, while it decreases monotonically in other countries. This paper formulates the concept of public health infrastructure and constructs a growth model that replicates various...