Question

Suppose that new government spending increases lifespans. In our model what should be the effect of this on hours worked per person in a given time period? Does it matter whether government spending adds extra years to the lifespan of living adults without improving their morbidity or if it expands both the peak and end years by equivalent amounts? What evidence exists for the predictions you have made that you are aware of?

Answer 1

On the off chance that the new government spending expands life traverses, this ought to diminish the quantity of hours worked per individual in a given era. Increasing total time would encourage more leisure and discourage same amount of work done. It definitely depends on how the added life years are used/affected.

If the government spending adds extra years to the lifespan of living adults without improving their morbidity then it causes no change in the number of hours worked as aging will refrain the ability to work at its own pace. On the off chance that it grows both the pinnacle and end a long time by identical sums the working hours will increment on the grounds that the end years will clearly have no financial exertion because of maturing? What evidence exists for the predictions you have made that you are aware of? (This is one period closed-economy model