Productive consumption and population dynamics in an endogenous growth model: Demographic trends and human development aid in developing economies

Research output: Contribution to journalArticle

3 Citations (Scopus)

Abstract

We find that by endogenizing the population growth rate, a growth model under the productive consumption hypothesis is more tractable than models in previous studies and has interesting implications for population dynamics. In the zero-saving phase, multiple saddle point stable steady states may exist, and the population growth rate may rise or decline along a transition path. In the positive-saving phase, such a steady state may exist uniquely, and the population growth rate may decline. With phase switching, the population growth rate may follow an inverted U-shaped curve. Human development aid may help an economy escape from an underdevelopment trap.

Original languageEnglish
Pages (from-to)696-709
Number of pages14
JournalJournal of Economic Dynamics and Control
Volume34
Issue number4
DOIs
Publication statusPublished - 2010 Apr 1
Externally publishedYes

Keywords

  • Endogenous growth
  • Population dynamics
  • Productive consumption

ASJC Scopus subject areas

  • Economics and Econometrics
  • Control and Optimization
  • Applied Mathematics

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