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Long-run consequences of population decline in an economy with exhaustible resources

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  • Mino, Kazuo
  • Sasaki, Hiroaki

Abstract

This study explores how population decline affects the long-run performance of an economy in which exhaustible resources are indispensable for production. Using a one-sector neoclassical growth model with external increasing returns, we examine the conditions under which the expansion of per capita income and consumption can be sustained in the long-run equilibrium. We find that population decline, rather than exhaustible resources, can terminate the persistent growth in per capita income and consumption.

Suggested Citation

  • Mino, Kazuo & Sasaki, Hiroaki, 2023. "Long-run consequences of population decline in an economy with exhaustible resources," Economic Modelling, Elsevier, vol. 121(C).
    • Handle: RePEc:eee:ecmode:v:121:y:2023:i:c:s026499932300024x
    DOI: 10.1016/j.econmod.2023.106212
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    Cited by:

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    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.

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    More about this item

    Keywords

    Exhaustible resources; Population decline; Long-run growth; External increasing returns;
    All these keywords.

    JEL classification:

    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
    • O44 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Environment and Growth
    • Q32 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Nonrenewable Resources and Conservation - - - Exhaustible Resources and Economic Development
    • Q43 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Energy and the Macroeconomy

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