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Mankiw-Romer-Weil Model with Declining Population: A Note

Author

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  • Sasaki, Hiroaki
  • Hori, Taichi
  • Hasegawa, Rokuhisa
  • Tajiri, Shigehiro
  • Nakamura, Kaito

Abstract

This study examines how the long-run growth rate of per capita income is determined when population growth is negative. It uses the augmented Solow growth model as a tool for this investigation. The results reveal four distinct types of dynamics, depending on the parameter combinations. In all these dynamics, the long-run growth rate of per capita income remains positive. This finding implies that sustainable growth in per capita income is achievable, even in the context of negative population growth.

Suggested Citation

  • Sasaki, Hiroaki & Hori, Taichi & Hasegawa, Rokuhisa & Tajiri, Shigehiro & Nakamura, Kaito, 2023. "Mankiw-Romer-Weil Model with Declining Population: A Note," MPRA Paper 119457, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:119457
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    References listed on IDEAS

    as
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    More about this item

    Keywords

    augmented Solow model; human capital accumulation; declining population;
    All these keywords.

    JEL classification:

    • J11 - Labor and Demographic Economics - - Demographic Economics - - - Demographic Trends, Macroeconomic Effects, and Forecasts
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration
    • O41 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - One, Two, and Multisector Growth Models

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