This paper investigates how population aging affects economic growth in a general equilibrium model of life cycle savings combined with endogenous growth. It shows that population aging is not necessarily a negative factor for growth. Introducing an old age pension system into the model, the...

Even if the relatively rich and the poor are initially caught in a poverty trap, the relatively rich can escape poverty by receiving payments from the poor. Further accumulation of wealth by the rich allows the poor to escape poverty.

We clarify the different effects of elementary and higher education on human capital accumulation and inequality. The productivity of elementary education plays a significant role in the widening of inequality regardless of the existence of multiple steady states. When the productivity of...