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R\&D-based Growth in the Post-modern Era

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  • Strulik, Holger
  • Prettner, Klaus
  • Prskawetz, Alexia

Abstract

Conventional R\&D-based growth theory suggests that productivity growth is positively correlated with population size or population growth, an implication which is hard to see in the data. Here we integrate microfounded fertility and schooling into an otherwise standard R\&D-based growth model. We then show how a Beckerian child quality-quantity trade-off explains why higher growth of productivity and income per capita are associated with lower population growth. The medium-run prospects for future economic growth - when fertility is going to be below replacement level in virtually all fully developed countries - are thus much better than predicted by conventional R\&D-based growth theory.

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Bibliographic Info

Paper provided by Leibniz Universität Hannover, Wirtschaftswissenschaftliche Fakultät in its series Hannover Economic Papers (HEP) with number dp-457.

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Length: 27 pages
Date of creation: Oct 2010
Date of revision:
Handle: RePEc:han:dpaper:dp-457

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Keywords: endogenous growth; R\&D; declining population; fertility; schooling; human capital; post-modern society; post-transitional fertility;

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Citations

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Cited by:
  1. Prettner, Klaus & Bloom, David E. & Strulik, Holger, 2013. "Declining fertility and economic well-being: Do education and health ride to the rescue?," Labour Economics, Elsevier, vol. 22(C), pages 70-79.
  2. Prettner, Klaus & Trimborn, Timo, 2012. "Demographic change and R&D-based economic growth: Reconciling theory and evidence," Center for European, Governance and Economic Development Research Discussion Papers 139, University of Goettingen, Department of Economics.
  3. Barbara Annicchiarico & Alessandra Pelloni, 2011. "Productivity Growth and Volatility: How Important are Wage and Price Rigidities?," CEIS Research Paper 211, Tor Vergata University, CEIS, revised 26 Sep 2011.
  4. Holger Strulik & Klaus Prettner & Alexia Prskawetz, 2013. "The past and future of knowledge-based growth," Journal of Economic Growth, Springer, vol. 18(4), pages 411-437, December.
  5. Prettner, Klaus, 2012. "Public education and economic prosperity: Semi-endogenous growth revisited," ECON WPS - Vienna University of Technology Working Papers in Economic Theory and Policy 02/2012, Vienna University of Technology, Institute for Mathematical Methods in Economics, Research Group Economics (ECON).
  6. Thomas Fent & Belinda Aparicio Diaz & Alexia Prskawetz, 2010. "Family Policies in the Context of Low Fertility and Social Structure," Working Papers 1102, Vienna Institute of Demography (VID) of the Austrian Academy of Sciences in Vienna.
  7. Ken-ichi Hashimoto & Ken Tabata, 2013. "Rising Longevity, Human Capital and Fertility in Overlapping Generations Version of an R&D-based Growth Model," Discussion Paper Series 104, School of Economics, Kwansei Gakuin University, revised May 2013.
  8. Prettner, Klaus, 2013. "Public education, technological change and economic prosperity," Center for European, Governance and Economic Development Research Discussion Papers 149, University of Goettingen, Department of Economics.
  9. Prettner, Klaus & Trimborn, Timo, 2012. "Demographic change and R&D-based economic growth: Reconciling theory and evidence," Center for European, Governance and Economic Development Research Discussion Papers 139, University of Goettingen, Department of Economics.
  10. Prettner, Klaus, 2012. "Public education, technological change and economic prosperity: semi-endogenous growth revisited," Annual Conference 2012 (Goettingen): New Approaches and Challenges for the Labor Market of the 21st Century 65414, Verein für Socialpolitik / German Economic Association.
  11. Prettner, Klaus, 2013. "Public education, technological change and economic prosperity," Center for European, Governance and Economic Development Research Discussion Papers 149, University of Goettingen, Department of Economics.

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