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Population and Ideas: A Theory of Endogenous Growth

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Charles I. Jones

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Abstract

Why do economies exhibit sustained growth in per capita income? This paper argues that endogenous fertility and increasing returns to scale are the fundamental ingredients in understanding endogenous growth. Endogenous fertility leads the scale of the economy to grow over time. Increasing returns translates this increase in scale into rising per capita income. A justification for increasing returns rather than linearity in the equation for technological progress is the fundamental insight of the idea-based growth literature according to this view. Endogenous fertility together with the increasing returns associated with the nonrivalry of ideas generates endogenous growth.

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Paper provided by National Bureau of Economic Research, Inc in its series NBER Working Papers with number 6285.

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Date of creation: Nov 1997
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Handle: RePEc:nbr:nberwo:6285

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Find related papers by JEL classification:
O40 - Economic Development, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - General
O30 - Economic Development, Technological Change, and Growth - - Technological Change - - - General

References listed on IDEAS
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    Other versions:
  5. Pitchford, John, 1972. "Population and Optimal Growth," Econometrica, Econometric Society, vol. 40(1), pages 109-36, January. [Downloadable!] (restricted)
  6. Solow, Robert M, 1994. "Perspectives on Growth Theory," Journal of Economic Perspectives, American Economic Association, vol. 8(1), pages 45-54, Winter. [Downloadable!] (restricted)
  7. Rebelo, Sergio, 1991. "Long-Run Policy Analysis and Long-Run Growth," Journal of Political Economy, University of Chicago Press, vol. 99(3), pages 500-521, June. [Downloadable!] (restricted)
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  8. Paul M. Romer, 1987. "Crazy Explanations for the Productivity Slowdown," NBER Chapters, in: NBER Macroeconomics Annual 1987, Volume 2, pages 163-210 National Bureau of Economic Research, Inc. [Downloadable!]
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  10. Judd, Kenneth L, 1985. "On the Performance of Patents," Econometrica, Econometric Society, vol. 53(3), pages 567-85, May. [Downloadable!] (restricted)
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    Other versions:
  12. Aghion, Philippe & Howitt, Peter, 1992. "A Model of Growth through Creative Destruction," Econometrica, Econometric Society, vol. 60(2), pages 323-51, March. [Downloadable!] (restricted)
    Other versions:
  13. Raut, L K & Srinivasan, T N, 1994. "Dynamics of Endogenous Growth," Economic Theory, Springer, vol. 4(5), pages 777-90, August.
  14. Lucas, Robert Jr., 1988. "On the mechanics of economic development," Journal of Monetary Economics, Elsevier, vol. 22(1), pages 3-42, July. [Downloadable!] (restricted)
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Cited by:
(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. Erich Gundlach, 2003. "Growth Effects of EU Membership: The Case of East Germany," Empirica, Springer, vol. 30(3), pages 237-270, September. [Downloadable!] (restricted)
  2. Grimaud, André, 2002. "Non Convexities, Imperfect Competition and Growth," IDEI Working Papers 150, Institut d'Économie Industrielle (IDEI), Toulouse. [Downloadable!]
  3. Creina Day, 2006. "Population and Endogenous Growth," ANUCBE School of Economics Working Papers 2006-475, Australian National University, College of Business and Economics, School of Economics. [Downloadable!]
  4. Holger Strulik, 2005. "Too Much of a Good Thing? The Quantitative Economics of R&D–driven Growth Revisited," Discussion Papers 05-26, University of Copenhagen. Department of Economics. [Downloadable!]
    Other versions:
  5. Orlando Gomes, 2004. "A Second-Order Approximation to Technology Choices," GE, Growth, Math methods 0409007, EconWPA. [Downloadable!]
  6. Holger Strulik, 2001. "The Role of Human Capital and Population Growth in R&D-Based Models of Economic Growth," Quantitative Macroeconomics Working Papers 20109, Hamburg University, Department of Economics. [Downloadable!]
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  7. Grimaud, André & Rougé, Luc, 2003. "Polluting Non-Renewable Resources, Innovation and Growth : Welfare and Environmental Policy," IDEI Working Papers 206, Institut d'Économie Industrielle (IDEI), Toulouse. [Downloadable!]
  8. Grimaud, André & Tournemaine, Frédéric, 2004. "Funding Research and Educating People in a Growth Model with Increasing Population," IDEI Working Papers 262, Institut d'Économie Industrielle (IDEI), Toulouse. [Downloadable!]
  9. Krzysztof Cichy, 2009. "Human Capital and Technological Progress as the Determinants of Economic Growth," National Bank of Poland Working Papers 60, National Bank of Poland, Economic Institute. [Downloadable!]
  10. Sung Jin Kang, 2000. "Relative Backwardness and Technological Catching Up with Scale Effects," Econometric Society World Congress 2000 Contributed Papers 0407, Econometric Society. [Downloadable!]
  11. Taiji Harashima, 2004. "A New Asymptotically Non-Scale Endogenous Growth Model," Development and Comp Systems 0412009, EconWPA, revised 20 Dec 2004. [Downloadable!]
  12. Gerry Boyle & Tom McCarthy & Jim Walsh, 1999. "Regional Income Differentials and the Issue of Regional Equalisation in Ireland," Economics, Finance and Accounting Department Working Paper Series n880499, Department of Economics, Finance and Accounting, National University of Ireland - Maynooth. [Downloadable!]
  13. Alberto Bucci, 2006. "Product Market Competition, R&D Effort and Economic Growth," DEGIT Conference Papers c011_037, DEGIT, Dynamics, Economic Growth, and International Trade. [Downloadable!]
    Other versions:
  14. Charles I. Jones, . "Growth: With or Without Scale Effects?," Working Papers 99001, Stanford University, Department of Economics. [Downloadable!]
    Other versions:
  15. Orlando Gomes, 2004. "Heterogeneous Researchers in a Two-Sector Representative Consumer Economy," GE, Growth, Math methods 0409009, EconWPA. [Downloadable!]
    Other versions:
  16. Andreas Schäfer, 2002. "Endogenous Growth with Endogenous Fertility and Social Discrimination in Education," Thuenen-Series of Applied Economic Theory 35, University of Rostock, Institute of Economics, Germany. [Downloadable!]
  17. Grimaud, André, 2008. "Weightless Economy, Knowledge Goods and Schumpeterian Growth," IDEI Working Papers 501, Institut d'Économie Industrielle (IDEI), Toulouse. [Downloadable!]
  18. Jacob L. Weisdorf, 2004. "From Domestic Manufacture to Industrial Revolution: Long-Run Growth and Agrucultural Development," Discussion Papers 04-06, University of Copenhagen. Department of Economics. [Downloadable!]
    Other versions:
  19. Growiec, Jakub, 2008. "Knife-edge conditions in the modeling of long-run growth regularities," MPRA Paper 9956, University Library of Munich, Germany. [Downloadable!]
  20. Gomes, Orlando, 2006. "Space, growth and technology: an integrated dynamic approach," MPRA Paper 2846, University Library of Munich, Germany. [Downloadable!]
    Other versions:
  21. Grimaud, André & Tournemaine, Frédéric, 2003. "Funding Directly Research in Growth Models Without Intermediate Goods," IDEI Working Papers 207, Institut d'Économie Industrielle (IDEI), Toulouse. [Downloadable!]
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