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Growth on a Finite Planet: Resources, Technology, and Population in the Long Run

  • Pietro F. Peretto
  • Simone Valente

We study the interactions between technological change, resource scarcity and population dynamics in a Schumpeterian model with endogenous fertility. We find a pseudo-Malthusian equilibrium in which population is constant and determined by resource scarcity while income grows exponentially. If labor and resources are substitutes in production, income and fertility dynamics are self-balancing and the pseudo-Malthusian equilibrium is the global attractor of the system. If labor and resources are complements, income and fertility dynamics are self-reinforcing and drive the economy towards either demographic explosion or collapse. Introducing a minimum resource requirement per capita, we obtain constant population even under complementarity.

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Paper provided by Duke University, Department of Economics in its series Working Papers with number 13-9.

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Length: 54
Date of creation: 2013
Date of revision:
Handle: RePEc:duk:dukeec:13-9
Contact details of provider: Postal: Department of Economics Duke University 213 Social Sciences Building Box 90097 Durham, NC 27708-0097
Phone: (919) 660-1800
Fax: (919) 684-8974
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