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Long-Run Consequences of Population Decline in an Economy with Exhaustible Natural Resources

Author

Listed:
  • Kazuo Mino

    (Institute of Economic Research, Kyoto University)

  • Hiroaki Sasaki

    (Graduate School of Economics, Kyoto University)

Abstract

This study explores how population decline affects the long-run performance of an economy in which exhaustible natural resources are indispensable in the process production. Using a one-sector neoclassical growth model with external increasing returns, we inspect the conditions under which the per capita income and consumption persistently expand in the long-run equilibrium. We fi nd that it is population decline, rather than exhaustible resources, that might terminate persistent growth in per capita income and consumption.

Suggested Citation

  • Kazuo Mino & Hiroaki Sasaki, 2021. "Long-Run Consequences of Population Decline in an Economy with Exhaustible Natural Resources," KIER Working Papers 1062, Kyoto University, Institute of Economic Research.
  • Handle: RePEc:kyo:wpaper:1062
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    References listed on IDEAS

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    More about this item

    Keywords

    exhaustible natural resources; population decline; long-run growth; external increasing returns;
    All these keywords.

    JEL classification:

    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
    • O44 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Environment and Growth
    • Q32 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Nonrenewable Resources and Conservation - - - Exhaustible Resources and Economic Development
    • Q43 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Energy and the Macroeconomy

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