This article explores the interaction between aggregate initial human capital, life expectancy and domestic investment. The article introduces a simple model that predicts that the positive effect of life expectancy on the domestic investment rate is mitigated in economies with a higher level of initial human capital. Using a large panel of countries over the past five decades, the article presents empirical evidence consistent with the main prediction of the model.
|Number of pages
|Published - Jan 1 2018
All Science Journal Classification (ASJC) codes
- Economics, Econometrics and Finance(all)