The Genuine Saving Criterion and the Value of Population in an Economy with Endogenous Population Changes
AbstractWe study an economy in which the rate of change of population depends on population policy decisions. This requires population as well as capital as state variables. By showing the algebraic relationship between the shadow price of the population and the shadow price of the per capita capital stock, we are still able to depict the optimal path and its convergence to the long-run equilibrium on a two-dimensional phase diagram. Moreover, we derive explicitly the expression of genuine savings in our model to evaluate the sustainability of the system.
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Bibliographic InfoPaper provided by University Library of Munich, Germany in its series MPRA Paper with number 14622.
Date of creation: 18 Jan 2008
Date of revision:
Savings; population policy; value of the population; economic growth; optimal control; phase diagram; dynamic programming;
Find related papers by JEL classification:
- O41 - Economic Development, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - One, Two, and Multisector Growth Models
- E2 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment
- O16 - Economic Development, Technological Change, and Growth - - Economic Development - - - Financial Markets; Saving and Capital Investment; Corporate Finance and Governance
This paper has been announced in the following NEP Reports:
- NEP-AGE-2009-04-18 (Economics of Ageing)
- NEP-ALL-2009-04-18 (All new papers)
- NEP-FDG-2009-04-18 (Financial Development & Growth)
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.:
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2011018, Université catholique de Louvain, Institut de Recherches Economiques et Sociales (IRES).
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