Endogenous Population In A Neoclassical Growth Model With Wealth And Time Values

The purpose of this study is to introduce endogenous population growth and portfolio equilibrium between physical wealth and gold into the Solow growth model. The study deals with dynamic interdependence between the birth rate, the mortality rate, the population growth, wealth accumulation, portfolio equilibrium between physical wealth and gold, and time distribution between work, leisure and children caring. The study studies the role of human capital, technological and preference changes on the birth and mortality rates, portfolio choice, and time distribution. We define a dynamic model and provide a computational procedure to demonstrate the motion of the economic system. As a genuine dynamic analysis is too complicated, we simulate the model. We show the motion of the economic growth and population change and identify the existence of equilibrium point. We also examine the effects of changes on the transitory processes and long term equilibrium point in the propensity to use gold, the propensity to have children, the propensity to save, woman’s propensity to use leisure, woman’s human capital and man’s emotional involvement in children caring.