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The Evolution of Population, Technology and Output

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  • Galindev, Ragchaasuren
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    Abstract

    This paper extends Galor and Weil's (2000) unified growth model on the evolution of population, technology and output by replacing the parental utility function in which consumption and children are unrelated, with a more general specification in which some commodities are unrelated with children while the others are substitutes. Considering some leisure goods as the substitutes for children, it aims to explain the demographic transition from high to low fertility with the observed increase in the relative price of children to that of leisure goods along with Galor and Weil's quality-quantity mechanism based on the observed increase in the educational attainments. This modification leads to a conclusion that the demographic transition is a natural phenomenon in this environment when children become relatively more expensive than leisure goods, even for a given level of education and a given price of leisure goods. In addition, an increase in education and a decrease in the price of leisure goods contribute to the demographic transition.

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    File URL: http://mpra.ub.uni-muenchen.de/17116/
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    File URL: http://mpra.ub.uni-muenchen.de/21803/
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    Bibliographic Info

    Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 17116.

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    Date of creation: 17 Jul 2008
    Date of revision: 22 Aug 2009
    Handle: RePEc:pra:mprapa:17116

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    Related research

    Keywords: Malthusian Regime; Modern Growth; Demographic Transition;

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    1. Guillaume Vandenbroucke, 2005. "Trend in Hours: The U.S. from 1900 to 1950," Economie d'Avant Garde Research Reports 11, Economie d'Avant Garde, revised Nov 2005.
    2. Fürnkranz-Prskawetz, Alexia & Kögel, Tomas, 2000. "Agricultural Productivity Growth and Escape from the Malthusian Trap," CEPR Discussion Papers 2485, C.E.P.R. Discussion Papers.
    3. Becker, Gary S & Lewis, H Gregg, 1973. "On the Interaction between the Quantity and Quality of Children," Journal of Political Economy, University of Chicago Press, vol. 81(2), pages S279-88, Part II, .
    4. Gary D. Hansen & Edward C. Prescott, 1998. "Malthus to Solow," NBER Working Papers 6858, National Bureau of Economic Research, Inc.
    5. Michele Boldrin & Larry E. Jones, 2002. "Mortality, Fertility, and Saving in a Malthusian Economy," Review of Economic Dynamics, Elsevier for the Society for Economic Dynamics, vol. 5(4), pages 775-814, October.
    6. Oded Galor & Omer Moav, 2002. "Natural Selection And The Origin Of Economic Growth," The Quarterly Journal of Economics, MIT Press, vol. 117(4), pages 1133-1191, November.
    7. Gary S. Becker & Kevin M. Murphy & Robert F. Tamura, 1990. "Human Capital, Fertility, and Economic Growth," NBER Working Papers 3414, National Bureau of Economic Research, Inc.
    8. Galor, Oded & Weil, David N, 1996. "The Gender Gap, Fertility, and Growth," American Economic Review, American Economic Association, vol. 86(3), pages 374-87, June.
    9. Karen Kopecky, 2005. "The Trend in Retirement," Economie d'Avant Garde Research Reports 12, Economie d'Avant Garde.
    10. Galor, Oded, 2004. "From Stagnation to Growth: Unified Growth Theory," CEPR Discussion Papers 4581, C.E.P.R. Discussion Papers.
    11. Matthias Doepke, 2004. "Accounting for Fertility Decline During the Transition to Growth," Journal of Economic Growth, Springer, vol. 9(3), pages 347-383, 09.
    12. Tamura, Robert, 2002. "Human capital and the switch from agriculture to industry," Journal of Economic Dynamics and Control, Elsevier, vol. 27(2), pages 207-242, December.
    13. David N. Weil & Oded Galor, 1999. "From Malthusian Stagnation to Modern Growth," American Economic Review, American Economic Association, vol. 89(2), pages 150-154, May.
    14. David N. Weil & Oded Galor, 2000. "Population, Technology, and Growth: From Malthusian Stagnation to the Demographic Transition and Beyond," American Economic Review, American Economic Association, vol. 90(4), pages 806-828, September.
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