Fertility Choice and Semi-Endogenous Growth: Where Becker Meets Jones
AbstractIntroducing fertility choice into an R&D-based semi-endogenous growth model makes it possible for the economy's long-run growth rate to be again fully endogenously determined. A positive growth rate along the balanced growth path requires a certain knife-edge assumption, though. In the usual framework, it would be the assumption that the intertemporal elasticity of substitution in consumption be exactly unity (IES=1). We argue that such an assumption constitutes the ultimate source of long-run growth in these models; thus, we analyze the alternatives. If one relaxes the IES=1 assumption, and introduces a minimum "subsistence" fertility level to the model, there may (but may not) emerge an asymptotic balanced growth path with positive growth rates, to which the economy eventually converges as levels of variables diverge to infinity. This balanced growth path is either saddle-path stable or completely stable. We also address the issue of the economy's invariance towards fertility-promoting policy within the semi-endogenous growth framework. We conclude, that such policy can bring long-run effects only in the knife-edge case of IES=1 type, so that Jones' policy invariance result is typically consistent with endogenous fertility.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by EconWPA in its series HEW with number 0503001.
Length: 21 pages
Date of creation: 14 Mar 2005
Date of revision: 17 Jan 2006
Note: Type of Document - pdf; pages: 21
Contact details of provider:
Web page: http://22.214.171.124
fertility choice; semi-endogenous growth; R&D; long-run dynamics; knife-edge conditions;
Other versions of this item:
- Growiec Jakub, 2006. "Fertility Choice and Semi-Endogenous Growth: Where Becker Meets Jones," The B.E. Journal of Macroeconomics, De Gruyter, vol. 6(2), pages 1-25, September.
- GROWIEC, Jakub, 2006. "Fertility choice and semi-endogenous growth: where Becker meets Jones," CORE Discussion Papers 2006023, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
- J13 - Labor and Demographic Economics - - Demographic Economics - - - Fertility; Family Planning; Child Care; Children; Youth
- O41 - Economic Development, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - One, Two, and Multisector Growth Models
This paper has been announced in the following NEP Reports:
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.:
- Barro, R.J. & Becker, G.S., 1988.
"Fertility Choice In A Model Of Economic Growth,"
University of Chicago - Economics Research Center
88-8, Chicago - Economics Research Center.
- Robert J. Barro & Gary S. Becker, . "Fertility Choice in a Model of Economic Growth," University of Chicago - Population Research Center 88-8, Chicago - Population Research Center.
- Taiji Harashima, 2005. "An Estimate of the Elasticity of Intertemporal Substitution in a Production Economy," Macroeconomics 0508030, EconWPA.
- Connolly, Michelle & Peretto, Pietro F, 2003. " Industry and the Family: Two Engines of Growth," Journal of Economic Growth, Springer, vol. 8(1), pages 115-48, March.
- Alwyn Young, 1998. "Growth without Scale Effects," Journal of Political Economy, University of Chicago Press, vol. 106(1), pages 41-63, February.
- Holger Strulik, 2005.
"The Role of Human Capital and Population Growth in R&D-based Models of Economic Growth,"
Review of International Economics,
Wiley Blackwell, vol. 13(1), pages 129-145, 02.
- Strulik, Holger, 2002. "The Role of Human Capital and Population Growth in R&D-Based Models of Economic Growth," Royal Economic Society Annual Conference 2002 170, Royal Economic Society.
- 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.
- Jones Charles I., 2001.
"Was an Industrial Revolution Inevitable? Economic Growth Over the Very Long Run,"
The B.E. Journal of Macroeconomics,
De Gruyter, vol. 1(2), pages 1-45, August.
- Charles I. Jones, 1999. "Was an Industrial Revolution Inevitable? Economic Growth Over the Very Long Run," NBER Working Papers 7375, National Bureau of Economic Research, Inc.
- Charles I. Jones, . "Was an Industrial Revolution Inevitable? Economic Growth Over the Very Long Run," Working Papers 99008, Stanford University, Department of Economics.
- Beaudry, Paul & van Wincoop, Eric, 1996. "The Intertemporal Elasticity of Substitution: An Exploration Using a US Panel of State Data," Economica, London School of Economics and Political Science, vol. 63(251), pages 495-512, August.
- Favero, Carlo A, 2005.
"Consumption, Wealth, the Elasticity of Intertemporal Substitution and Long-Run Stock Market Returns,"
CEPR Discussion Papers
5110, C.E.P.R. Discussion Papers.
- Carlo Favero, 2005. "Consumption, Wealth, the Elasticity of Intertemporal Substitution and Long-Run Stock Market Returns," Working Papers 291, IGIER (Innocenzo Gasparini Institute for Economic Research), Bocconi University.
- Holger Strulik & Klaus Prettner & Alexia Prskawetz, 2010.
"R&D-Based Growth in the Post-Modern Era,"
1009, Vienna Institute of Demography (VID) of the Austrian Academy of Sciences in Vienna.
- Strulik, Holger & Prettner, Klaus & Prskawetz, Alexia, 2011. "R&D-based growth in the post-modern era," ECON WPS - Vienna University of Technology Working Papers in Economic Theory and Policy 04/2011, Vienna University of Technology, Institute for Mathematical Methods in Economics, Research Group Economics (ECON).
- Strulik, Holger & Prettner, Klaus & Prskawetz, Alexia, 2010. "R\&D-based Growth in the Post-modern Era," Diskussionspapiere der Wirtschaftswissenschaftlichen FakultÃ¤t der Leibniz UniversitÃ¤t Hannover dp-457, Leibniz Universität Hannover, Wirtschaftswissenschaftliche Fakultät.
- Holger Strulik & Klaus Prettner & Alexia Prskawetz, 2011. "R&D-based Growth in the Post-modern Era," PGDA Working Papers 7411, Program on the Global Demography of Aging.
- Holger Strulik & Klaus Prettner & Alexia Prskawetz, 2013.
"The past and future of knowledge-based growth,"
Journal of Economic Growth,
Springer, vol. 18(4), pages 411-437, December.
- Strulik, Holger & Prettner, Klaus & Prskawetz, Alexia, 2012. "The past and future of knowledge-based growth," Center for European, Governance and Economic Development Research Discussion Papers 140, University of Goettingen, Department of Economics.
- Spyridon Boikos & Alberto Bucci & Thanasis Stengos, 2012.
"Non-Monotonicity of Fertility in Human Capital Accumulation and Economic Growth,"
1213, University of Guelph, Department of Economics and Finance.
- Boikos, Spyridon & Bucci, Alberto & Stengos, Thanasis, 2013. "Non-monotonicity of fertility in human capital accumulation and economic growth," Journal of Macroeconomics, Elsevier, vol. 38(PA), pages 44-59.
- Chu, Angus C. & Cozzi, Guido, 2011. "Cultural preference on fertility and the long-run growth effects of intellectual property rights," MPRA Paper 29059, University Library of Munich, Germany.
- Angus Chu & Guido Cozzi & Chih-Hsing Liao, 2013. "Endogenous fertility and human capital in a Schumpeterian growth model," Journal of Population Economics, Springer, vol. 26(1), pages 181-202, January.
- Luca Spataro & Thomas I. Renstroem, 2010.
"Optimal taxation, critical-level utilitarianism and economic growth,"
2010_06, Durham University Business School.
- Spataro, Luca & Renström, Thomas I., 2012. "Optimal taxation, critical-level utilitarianism and economic growth," Journal of Public Economics, Elsevier, vol. 96(9-10), pages 727-738.
- Alberto Bucci & Chiara Del Bo, 2010.
"On the Interaction between Public Investment and Private Capital in Economic Growth,"
DEGIT Conference Papers
c015_007, DEGIT, Dynamics, Economic Growth, and International Trade.
- Alberto BUCCI & Chiara DEL BO, 2009. "On the interaction between public investment and private capital in economic growth," Departmental Working Papers 2009-44, Department of Economics, Management and Quantitative Methods at Università degli Studi di Milano.
- Alberto Bucci & Chiara Del Bo, 2009. "On the interaction between public investment and private capital in economic growth," UNIMI - Research Papers in Economics, Business, and Statistics unimi-1092, Universitá degli Studi di Milano.
- Bucci, Alberto & Segre, Giovanna, 2011. "Culture and human capital in a two-sector endogenous growth model," Research in Economics, Elsevier, vol. 65(4), pages 279-293, December.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (EconWPA).
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.