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R&D-Based Growth in the Post-Modern Era

Listed author(s):
  • Holger Strulik
  • Klaus Prettner
  • Alexia Prskawetz

Conventional R&D-based growth theory suggests that productivity growth is positively correlated with population size or population growth, an implication which is hard to see in the data. Here we integrate micro-founded fertility and schooling into an otherwise standard R&D-based growth model. We then show how a Beckerian child quality-quantity trade-off explains why higher growth of productivity and income per capita are associated with lower population growth. The medium-run prospects for future economic growth - when fertility is going to be below replacement level in virtually all fully developed countries - are thus much better than predicted by conventional R&D-based growth theory..

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Paper provided by Vienna Institute of Demography (VID) of the Austrian Academy of Sciences in Vienna in its series Working Papers with number 1009.

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Length: 29 pages
Date of creation: Oct 2010
Handle: RePEc:vid:wpaper:1009
Contact details of provider: Web page: http://www.oeaw.ac.at/vid/

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