IDEAS home Printed from https://ideas.repec.org/a/ebl/ecbull/eb-19-00417.html
   My bibliography  Save this article

The Solow growth model with a CES production function and declining population

Author

Listed:
  • Hiroaki Sasaki

    (Graduate School of Economics, Kyoto University)

Abstract

This study investigates the relationship between per capita output growth and population growth using the Solow growth model when population growth is negative. When the Cobb-Douglas production function is used, the per capita output growth rate can be positive even if the technological progress rate is zero. In contrast, when the CES production function is used, the per capita output growth rate is zero if the technological progress rate is zero and the elasticity of substitution between capital and labor is less than unity.

Suggested Citation

  • Hiroaki Sasaki, 2019. "The Solow growth model with a CES production function and declining population," Economics Bulletin, AccessEcon, vol. 39(3), pages 1979-1988.
    • Handle: RePEc:ebl:ecbull:eb-19-00417
    as

    Download full text from publisher

    File URL: http://www.accessecon.com/Pubs/EB/2019/Volume39/EB-19-V39-I3-P186.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Charles I. Jones, 1999. "Growth: With or Without Scale Effects?," American Economic Review, American Economic Association, vol. 89(2), pages 139-144, May.
    2. Robert M. Solow, 1956. "A Contribution to the Theory of Economic Growth," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 70(1), pages 65-94.
    3. Jones, Charles I, 1995. "R&D-Based Models of Economic Growth," Journal of Political Economy, University of Chicago Press, vol. 103(4), pages 759-784, August.
    4. Thomas Christiaans, 2011. "Semi-endogenous growth when population is decreasing," Economics Bulletin, AccessEcon, vol. 31(3), pages 2667-2673.
    5. Robert J. Barro & Xavier Sala-i-Martin, 2003. "Economic Growth, 2nd Edition," MIT Press Books, The MIT Press, edition 2, volume 1, number 0262025531, December.
    6. Rowthorn, Robert, 1999. "Unemployment, Wage Bargaining and Capital-Labour Substitution," Cambridge Journal of Economics, Oxford University Press, vol. 23(4), pages 413-425, July.
    7. Sasaki, Hiroaki & Hoshida, Keisuke, 2017. "The Effects Of Negative Population Growth: An Analysis Using A Semiendogenous R&D Growth Model," Macroeconomic Dynamics, Cambridge University Press, vol. 21(7), pages 1545-1560, October.
    8. Rainer Klump & Peter McAdam & Alpo Willman, 2007. "Factor Substitution and Factor-Augmenting Technical Progress in the United States: A Normalized Supply-Side System Approach," The Review of Economics and Statistics, MIT Press, vol. 89(1), pages 183-192, February.
    9. World Bank, 2013. "World Development Indicators 2013," World Bank Publications - Books, The World Bank Group, number 13191, December.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Sasaki, Hiroaki & Fukatani, Noriki & Imai, Daisuke & Kamanaka, Yusuke, 2022. "Sustainable Economic Growth in an Economy with Exhaustible Resources and a Declining Population under the Balance-of-Payments Constraint," MPRA Paper 113559, University Library of Munich, Germany.
    2. Sasaki, Hiroaki & Mino, Kazuo, 2021. "Effects of Exhaustible Resources and Declining Population on Economic Growth with Hotelling's Rule," MPRA Paper 107787, University Library of Munich, Germany.
    3. Bucci, Alberto, 2023. "Can a negative population growth rate sustain a positive economic growth rate in the long run?," Mathematical Social Sciences, Elsevier, vol. 122(C), pages 17-28.
    4. Hellwagner, Timon & Weber, Enzo, 2021. "Labour Market Adjustments to Population Decline," VfS Annual Conference 2021 (Virtual Conference): Climate Economics 242455, Verein für Socialpolitik / German Economic Association.
    5. Sasaki, Hiroaki, 2023. "Growth with automation capital and declining population," Economics Letters, Elsevier, vol. 222(C).
    6. Ichiroh DAITOH & Hiroaki SASAKI, 2023. "At the Right Time:Ramsey-Cass-Koopmans Model with Declining Population," Discussion papers e-23-002, Graduate School of Economics , Kyoto University.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Sasaki, Hiroaki & Mino, Kazuo, 2021. "Effects of Exhaustible Resources and Declining Population on Economic Growth with Hotelling's Rule," MPRA Paper 107787, University Library of Munich, Germany.
    2. Ichiroh DAITOH & Hiroaki SASAKI, 2023. "At the Right Time:Ramsey-Cass-Koopmans Model with Declining Population," Discussion papers e-23-002, Graduate School of Economics , Kyoto University.
    3. Sasaki, Hiroaki, 2017. "A Note on the Solow Growth Model with a CES Production Function and Declining Population," MPRA Paper 80062, University Library of Munich, Germany.
    4. Sasaki, Hiroaki & Fukatani, Noriki & Imai, Daisuke & Kamanaka, Yusuke, 2022. "Sustainable Economic Growth in an Economy with Exhaustible Resources and a Declining Population under the Balance-of-Payments Constraint," MPRA Paper 113559, University Library of Munich, Germany.
    5. Sasaki, Hiroaki, 2019. "Non-Renewable Resources and the Possibility of Sustainable Economic Development in a Positive or Negative Population Growth Economy," MPRA Paper 92204, University Library of Munich, Germany.
    6. Sasaki, Hiroaki, 2023. "Growth with automation capital and declining population," Economics Letters, Elsevier, vol. 222(C).
    7. Sasaki, Hiroaki & Hoshida, Keisuke, 2014. "Semi-Endogenous R&D Growth Model with Negative Population Growth," MPRA Paper 53833, University Library of Munich, Germany.
    8. Bo-Xiang Hsu & Yi-Min Chen, 2021. "Why university matters: the impact of university resources on foreign workers’ human and social capital accumulation," International Entrepreneurship and Management Journal, Springer, vol. 17(1), pages 45-61, March.
    9. Growiec, Jakub & McAdam, Peter & Mućk, Jakub, 2018. "Endogenous labor share cycles: Theory and evidence," Journal of Economic Dynamics and Control, Elsevier, vol. 87(C), pages 74-93.
    10. Sasaki, Hiroaki & Hori, Taichi & Hasegawa, Rokuhisa & Tajiri, Shigehiro & Nakamura, Kaito, 2023. "Mankiw-Romer-Weil Model with Declining Population: A Note," MPRA Paper 119457, University Library of Munich, Germany.
    11. Bucci, Alberto, 2023. "Can a negative population growth rate sustain a positive economic growth rate in the long run?," Mathematical Social Sciences, Elsevier, vol. 122(C), pages 17-28.
    12. Nihal Bayraktar, 2019. "Effectiveness of public investment on growth in sub-Saharan Africa," Eurasian Economic Review, Springer;Eurasia Business and Economics Society, vol. 9(4), pages 421-457, December.
    13. repec:hal:spmain:info:hdl:2441/4cufqrm9749dbol0m0bsfeopka is not listed on IDEAS
    14. Jeon, Heesang, 2015. "Knowledge and Contemporary Capitalism in Light of Marx's Value Theory," Thesis Commons g5njk, Center for Open Science.
    15. Gancia, Gino & Zilibotti, Fabrizio, 2005. "Horizontal Innovation in the Theory of Growth and Development," Handbook of Economic Growth, in: Philippe Aghion & Steven Durlauf (ed.), Handbook of Economic Growth, edition 1, volume 1, chapter 3, pages 111-170, Elsevier.
    16. Xavier Ragot, 2003. "Croissance et division du travail," Post-Print hal-03475968, HAL.
    17. Bergheim, Stefan, 2007. "Pair-wise cointegration in long-run growth models," Research Notes 24, Deutsche Bank Research.
    18. Maria João Ribeiro, 2003. "Endogenous Growth: Analytical Review of its Generating Mechanisms," NIPE Working Papers 4/2003, NIPE - Universidade do Minho.
    19. Alberto Bucci, 2009. "Scale Effects, Savings and Factor Shares in a Human Capital-based Growth Model with Physical Capital Accumulation," International Economic Journal, Taylor & Francis Journals, vol. 23(3), pages 291-307.
    20. Ribeiro, M.J., 2000. "A Nonscale Growth Model with R&D and Human Capital Accumulation," The Warwick Economics Research Paper Series (TWERPS) 574, University of Warwick, Department of Economics.
    21. Kemnitz, Alexander & Knoblach, Michael, 2020. "Endogenous sigma-augmenting technological change: An R&D-based approach," CEPIE Working Papers 02/20, Technische Universität Dresden, Center of Public and International Economics (CEPIE).

    More about this item

    Keywords

    Solow growth model; negative population growth; CES production function;
    All these keywords.

    JEL classification:

    • O4 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity
    • E2 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ebl:ecbull:eb-19-00417. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: John P. Conley (email available below). General contact details of provider: .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.