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Poverty Trap and Endogenous Population

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Author Info
Hung, Nguyen Manh
Makdissi, Paul

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Abstract

In this paper, we develop a growth model in which human being is a production factor which can be combined with a fixed factor, say land, to produce a homogeneous commodity. Saving, so to speak, can only be made through having children, the number of which is an endogenous decision to the household. In this context, we show that the economy may run into a poverty trap with a subsistent level per capita consumption. However, we also demonstrate that the economy can escape from this unappealing long run situation through a suitable technology transfer or an appropriate child-rearing tax. For such an escape, the technology transfer must be non-neutral in the sense that it modifies the ratio of factor's marginal productivity.

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File URL: http://www.ecn.ulaval.ca/w3/recherche/cahiers/2001/0104.pdf
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Paper provided by Université Laval - Département d'économique in its series Cahiers de recherche with number 0104.

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Date of creation: 2001
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Handle: RePEc:lvl:laeccr:0104

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Related research
Keywords: Poverty trap; Endogenous population; Endogenous growth;

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Find related papers by JEL classification:
J11 - Labor and Demographic Economics - - Demographic Economics - - - Demographic Trends and Forecasts
O11 - Economic Development, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development
O40 - Economic Development, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - General

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  1. Paul Makdissi, 2001. "Population, ressources naturelles et droits de propriété," Annales d'Economie et de Statistique, ADRES, issue 61, pages 07, Janvier-M. [Downloadable!]
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