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Is Declining Productivity Inevitable?

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  • Dalgaard, Carl-Johan
  • Kreiner, Claus Thustrup

Abstract

Fertility has been declining on all continents for the last couple of decades and this development is expected to continue in the future. Prevailing innovation-based growth theories imply, as a consequence of scale effects from the size of population, that such demographic changes will lead to a major slowdown in productivity growth. In this paper we challenge this pessimistic view of the future. By allowing for endogenous human capital in a basic R&D driven growth model we develop a theory of scale-invariant endogenous growth according to which population growth is neither necessary nor conductive for economic growth. Copyright 2001 by Kluwer Academic Publishers

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Bibliographic Info

Article provided by Springer in its journal Journal of Economic Growth.

Volume (Year): 6 (2001)
Issue (Month): 3 (September)
Pages: 187-203

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Handle: RePEc:kap:jecgro:v:6:y:2001:i:3:p:187-203

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Web page: http://www.springerlink.com/link.asp?id=102931

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