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Endogenous Population Growth May Imply Chaos

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  • Prskawetz, Alexia
  • Feichtinger, Gustav
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    Abstract

    We consider a discrete-time neoclassical growth model with an endogenous rate of population growth. The resulting one-dimensional map for the capital intensity has a tilted z-shape. Using the theory of nonlinear dynamical systems, we obtain numerical results on the qualitative behavior of time paths for changing parameter values. Besides stable and periodic solutions, erratic time paths may result. In particular, myopic and far-sighted economies - assumed to be characterized by low and high savings rate respectively - are characterized by stable per capita capital stocks, while solutions with chaotic windows exist between these two extremes.

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    Bibliographic Info

    Article provided by Springer in its journal Journal of Population Economics.

    Volume (Year): 8 (1995)
    Issue (Month): 1 (February)
    Pages: 59-80

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    Handle: RePEc:spr:jopoec:v:8:y:1995:i:1:p:59-80

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    Cited by:
    1. Azomahou, Theophile & Mishra, Tapas, 2009. "Stochastic environmental effects, demographic variation, and economic growth," MERIT Working Papers 016, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
    2. Teheni EL GHAK & Hajer ZARROUK, 2010. "Développement Financier Et Écarts De Revenus Des Pays : Une Analyse Empirique Sur Données De Panel," Region et Developpement, Region et Developpement, LEAD, Universite du Sud - Toulon Var, vol. 32, pages 59-90.
    3. Azomahou, Théophile & Mishra, Tapas, 2008. "Age dynamics and economic growth: Revisiting the nexus in a nonparametric setting," Economics Letters, Elsevier, vol. 99(1), pages 67-71, April.
    4. Bohm, Volker & Kaas, Leo, 2000. "Differential savings, factor shares, and endogenous growth cycles," Journal of Economic Dynamics and Control, Elsevier, vol. 24(5-7), pages 965-980, June.
    5. Tapas K. Mishra, 2006. "A Further Look into the Demography-based GDP Forecasting Method," Working Papers of BETA 2006-17, Bureau d'Economie Théorique et Appliquée, UDS, Strasbourg.
    6. Azomahou, Théophile & Diebolt, Claude & Mishra, Tapas, 2009. "Spatial persistence of demographic shocks and economic growth," Journal of Macroeconomics, Elsevier, vol. 31(1), pages 98-127, March.

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