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Population and Endogenous Growth

  • Creina Day

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Using a general three sector growth model, this paper derives general conditions for positive growth in the economy along a balanced growth path under the alternative assumptions of a static population and a growing population. The framework is general enough to replicate endogenous and semi-endogenous R&D based growth models. This paper challenges the conventional wisdom that (non-) linearity is synonymous with (semi-) endogenous growth. CES technology is introduced to human capital accumulation to obtain positive balanced growth with or without population growth.

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File URL: http://cbe.anu.edu.au/researchpapers/econ/wp475.pdf
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Paper provided by Australian National University, College of Business and Economics, School of Economics in its series ANU Working Papers in Economics and Econometrics with number 2006-475.

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Length: 33 pages
Date of creation: Oct 2006
Date of revision:
Handle: RePEc:acb:cbeeco:2006-475
Contact details of provider: Postal: Canberra, ACT 2601
Phone: +61 2 6125 3807
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Web page: http://rse.anu.edu.au/
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  1. Charles I. Jones, . "Population and Ideas: A Theory of Endogenous Growth," Working Papers 97018, Stanford University, Department of Economics.
  2. Aghion, P. & Howitt, P., 1989. "A Model Of Growth Through Creative Destruction," UWO Department of Economics Working Papers 8904, University of Western Ontario, Department of Economics.
  3. Romer, Paul M, 1990. "Endogenous Technological Change," Journal of Political Economy, University of Chicago Press, vol. 98(5), pages S71-102, October.
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  5. Dinopoulos, Elias & Thompson, Peter, 1998. " Schumpeterian Growth without Scale Effects," Journal of Economic Growth, Springer, vol. 3(4), pages 313-35, December.
  6. 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.
  7. Dalgaard, Carl-Johan & Kreiner, Claus Thustrup, 2001. " Is Declining Productivity Inevitable?," Journal of Economic Growth, Springer, vol. 6(3), pages 187-203, September.
  8. Jones, C.I., 2000. "Sources of U.S. Economic Growth in a World of Ideas," Papers 99-29, United Nations World Employment Programme-.
  9. Eicher, Theo S & Turnovsky, Stephen J, 1999. "Non-scale Models of Economic Growth," Economic Journal, Royal Economic Society, vol. 109(457), pages 394-415, July.
  10. J. D. Pitchpord, 1960. "GROWTH and THE ELASTICITY OF FACTOR SUBSTITUTION-super-1," The Economic Record, The Economic Society of Australia, vol. 36(76), pages 491-504, December.
  11. Jones, Charles I, 1995. "R&D-Based Models of Economic Growth," Journal of Political Economy, University of Chicago Press, vol. 103(4), pages 759-84, August.
  12. Lucas, Robert Jr., 1988. "On the mechanics of economic development," Journal of Monetary Economics, Elsevier, vol. 22(1), pages 3-42, July.
  13. Casey B. Mulligan & Xavier Sala-i-Martin, 1992. "Transitional Dynamics in Two-Sector Models of Endogenous Growth," NBER Working Papers 3986, National Bureau of Economic Research, Inc.
  14. 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.
  15. Christiaans, Thomas, 2004. "Types of balanced growth," Economics Letters, Elsevier, vol. 82(2), pages 253-258, February.
  16. Aghion, Philippe & Howitt, Peter, 1992. "A Model of Growth Through Creative Destruction," Scholarly Articles 12490578, Harvard University Department of Economics.
  17. Chris Papageorgiou, . "Imitation in a Non-Scale R&D Growth Model," Departmental Working Papers 2002-11, Department of Economics, Louisiana State University.
  18. Samuel S. Kortum, 1997. "Research, Patenting, and Technological Change," Econometrica, Econometric Society, vol. 65(6), pages 1389-1420, November.
  19. Segerstrom, Paul S, 1998. "Endogenous Growth without Scale Effects," American Economic Review, American Economic Association, vol. 88(5), pages 1290-1310, December.
  20. Carl-Johan Dalgaard & Claus Thustrup Kreiner, 2003. "Endogenous Growth: A Knife Edge or the Razor's Edge?," Scandinavian Journal of Economics, Wiley Blackwell, vol. 105(1), pages 73-86, 03.
  21. Luis A. Rivera-Batiz & Paul M. Romer, 1990. "Economic Integration and Endogenous Growth," NBER Working Papers 3528, National Bureau of Economic Research, Inc.
  22. Steger Thomas M., 2005. "Non-Scale Models of R&D-based Growth: The Market Solution," The B.E. Journal of Macroeconomics, De Gruyter, vol. 5(1), pages 1-30, February.
  23. Peretto, Pietro F, 1998. " Technological Change and Population Growth," Journal of Economic Growth, Springer, vol. 3(4), pages 283-311, December.
  24. Jones, Larry E & Manuelli, Rodolfo E, 1990. "A Convex Model of Equilibrium Growth: Theory and Policy Implications," Journal of Political Economy, University of Chicago Press, vol. 98(5), pages 1008-38, October.
  25. Funke, Michael & Strulik, Holger, 2000. "On endogenous growth with physical capital, human capital and product variety," European Economic Review, Elsevier, vol. 44(3), pages 491-515, March.
  26. Duffy, John & Papageorgiou, Chris, 2000. " A Cross-Country Empirical Investigation of the Aggregate Production Function Specification," Journal of Economic Growth, Springer, vol. 5(1), pages 87-120, March.
  27. Li, Chol-Won, 2000. "Endogenous vs. Semi-endogenous Growth in a Two-R&D-Sector Model," Economic Journal, Royal Economic Society, vol. 110(462), pages C109-22, March.
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