TY - JOUR
T1 - Productive consumption and population dynamics in an endogenous growth model
T2 - Demographic trends and human development aid in developing economies
AU - Daitoh, Ichiroh
PY - 2010/4/1
Y1 - 2010/4/1
N2 - 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.
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.
KW - Endogenous growth
KW - Population dynamics
KW - Productive consumption
UR - http://www.scopus.com/inward/record.url?scp=77950299717&partnerID=8YFLogxK
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U2 - 10.1016/j.jedc.2009.11.004
DO - 10.1016/j.jedc.2009.11.004
M3 - Article
AN - SCOPUS:77950299717
VL - 34
SP - 696
EP - 709
JO - Journal of Economic Dynamics and Control
JF - Journal of Economic Dynamics and Control
SN - 0165-1889
IS - 4
ER -