Re-formulation of the Solow economic growth model whit the Richards population growth law
AbstractIn standard economic growth theory it is usually assumed that labor force follows exponential growth. That is not a realistic assumption. In this paper we introduce a generalized logistic equation (Richards law) that describes more accurately population growth. Then we analyze the neoclassical Solow model with growth of population following the Richards law, and compares it with the classical model with exponential growth. We show that with the Richards law, the intrinsic rate of population growth plays no role in determining long run equilibrium per worker level of capital. We also present the closed-form solution of the model when the production function is Cobb-Douglas and we analyze the stability of the model, contrasting its long run equilibrium with the steady state of the traditional model.
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Bibliographic InfoPaper provided by EconWPA in its series GE, Growth, Math methods with number 0508006.
Length: 11 pages
Date of creation: 26 Aug 2005
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Population growth; Solow's growth model; Richards equation.;
Find related papers by JEL classification:
- C62 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Existence and Stability Conditions of Equilibrium
- O41 - Economic Development, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - One, Two, and Multisector Growth Models
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