Abstract
This paper investigates the relationship between growth and inequality from a demographic point of view. In an extended model of the accidental bequest with endogenous fertility, we analyze the effects of a decrease in old-age mortality rate on the equilibrium growth rate as well as on the income distribution. We show that the relationship between growth and inequality is at first positive and then may be negative in the process of population aging. The results are consistent with the empirical evidence in some developed countries.
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