Productive consumption and population dynamics in an endogenous growth model

Demographic trends and human development aid in developing economies

Research output: Contribution to journalArticle

2 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
Externally publishedYes

Fingerprint

Endogenous Growth
Population dynamics
Population Growth
Population Dynamics
Growth Model
Saddlepoint
Trap
Path
Curve
Human
Trends
Human development
Population growth
Demographic trends
Development aid
Consumption dynamics
Endogenous growth model
Developing economies
Zero

Keywords

  • Endogenous growth
  • Population dynamics
  • Productive consumption

ASJC Scopus subject areas

  • Economics and Econometrics
  • Control and Optimization
  • Applied Mathematics

Cite this

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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.",
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AB - 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.

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