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The Solow growth model with a CES production function and declining population

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  • Hiroaki Sasaki

    (Graduate School of Economics, Kyoto University)

Abstract

This study investigates the relationship between per capita output growth and population growth using the Solow growth model when population growth is negative. When the Cobb-Douglas production function is used, the per capita output growth rate can be positive even if the technological progress rate is zero. In contrast, when the CES production function is used, the per capita output growth rate is zero if the technological progress rate is zero and the elasticity of substitution between capital and labor is less than unity.

Suggested Citation

  • Hiroaki Sasaki, 2019. "The Solow growth model with a CES production function and declining population," Economics Bulletin, AccessEcon, vol. 39(3), pages 1979-1988.
    • Handle: RePEc:ebl:ecbull:eb-19-00417
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    File URL: http://www.accessecon.com/Pubs/EB/2019/Volume39/EB-19-V39-I3-P186.pdf
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    References listed on IDEAS

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    Citations

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    Cited by:

    1. Sasaki, Hiroaki & Fukatani, Noriki & Imai, Daisuke & Kamanaka, Yusuke, 2022. "Sustainable Economic Growth in an Economy with Exhaustible Resources and a Declining Population under the Balance-of-Payments Constraint," MPRA Paper 113559, University Library of Munich, Germany.
    2. Sasaki, Hiroaki & Mino, Kazuo, 2024. "Effects of exhaustible resources and declining population on economic growth with Hotelling’s rule," International Review of Economics & Finance, Elsevier, vol. 94(C).
    3. Bucci, Alberto, 2023. "Can a negative population growth rate sustain a positive economic growth rate in the long run?," Mathematical Social Sciences, Elsevier, vol. 122(C), pages 17-28.
    4. Hellwagner, Timon & Weber, Enzo, 2021. "Labour Market Adjustments to Population Decline," VfS Annual Conference 2021 (Virtual Conference): Climate Economics 242455, Verein für Socialpolitik / German Economic Association.
    5. Sasaki, Hiroaki, 2023. "Growth with automation capital and declining population," Economics Letters, Elsevier, vol. 222(C).
    6. Ichiroh DAITOH & Hiroaki SASAKI, 2023. "At the Right Time:Ramsey-Cass-Koopmans Model with Declining Population," Discussion papers e-23-002, Graduate School of Economics , Kyoto University.

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    More about this item

    Keywords

    Solow growth model; negative population growth; CES production function;
    All these keywords.

    JEL classification:

    • O4 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity
    • E2 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment

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