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Demography In Macroeconomic Models: When Labour Supply Matters For Economic Cycles

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  • Piero Manfredi
  • Luciano Fanti

Abstract

The issue of the onset of Malthusian cycles is investigated by means of a demo‐economic model incorporating the age structure of the population. It is shown that the delayed recruitment into the labour force is a major source of demo‐economic instability, potentially leading to sustained oscillations. We also compare different modelling strategies for age structure, by showing that the results of our general model are borne out by those provided by a simpler model, based on a representation of age structure via time delays, which allows a deeper mathematical analysis. This suggests that simplified delay models may be of great help in understanding the qualitative properties of complex age structure models.

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  • Piero Manfredi & Luciano Fanti, 2006. "Demography In Macroeconomic Models: When Labour Supply Matters For Economic Cycles," Metroeconomica, Wiley Blackwell, vol. 57(4), pages 536-563, November.
    • Handle: RePEc:bla:metroe:v:57:y:2006:i:4:p:536-563
    DOI: 10.1111/j.1467-999X.2006.00255.x
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    6. Fanti, Luciano & Manfredi, Piero, 2009. "Neoclassical production theory and growth with unemployment: The stability issue revisited," Structural Change and Economic Dynamics, Elsevier, vol. 20(2), pages 126-135, June.
    7. Srdelic, Leonarda & Davila-Fernandez, Marwil J., 2022. "Demographic transition and economic growth in 6-EU member states," MPRA Paper 112188, University Library of Munich, Germany.
    8. Marwil J Dávila-Fernández & Jose Luis Oreiro, 2023. "Competitiveness and dynamic cumulative causation in an export-led growing economy," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 32(2), pages 522-550.
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