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THE EFFECTS OF NEGATIVE POPULATION GROWTH: AN ANALYSIS USING A SEMIENDOGENOUS R&D GROWTH MODEL

Published online by Cambridge University Press:  03 August 2016

Hiroaki Sasaki  and
Keisuke Hoshida
Hiroaki Sasaki*
Affiliation:
Kyoto University
Keisuke Hoshida
Affiliation:
Kyoto University
*
Address correspondence to: Hiroaki Sasaki, Graduate School of Economics, Kyoto University, Yoshida-Honmachi, Sakyo-ku, Kyoto 606-8501, JAPAN; e-mail: [email protected].
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Abstract

This study investigates the rates of technological progress, total output growth, and per capita output growth when population growth is negative using a semiendogenous research and development (R&D) growth model. The analysis shows that within a finite time horizon, the employment share of the final goods sector reaches unity and that of the R&D sector reaches zero; accordingly, the rate of technological progress tends toward zero. In this case, the growth rate of per capita output asymptotically approaches a positive value.

Keywords

Technological ProgressSemiendogenous Growth modelNegative Population Growth
Type
Articles
Information
Macroeconomic Dynamics , Volume 21 , Issue 7 , October 2017 , pp. 1545 - 1560
Copyright
Copyright © Cambridge University Press 2016 

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Footnotes

We would like to thank Kouichi Futagami, Kazuhiro Yuki, Keita Kamei, and Yusuke Amano for their useful comments and helpful suggestions on earlier versions of this paper. We also thank the editor of this journal. The first author is grateful to KAKENHI (25380295) for financial support. The usual disclaimer applies.

References

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