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Endogenous Growth of Population and Income Depending on Resource and Knowledge

Author

Listed:
  • A. Prskawetz

    (Max Planck Institute for Demographic Research)

  • G. Feichtinger

    (Vienna University of Technology)

  • M. Luptacik

    (Vienna University of Technology)

  • A. Milik

    (Vienna University of Technology)

  • F. Wirl

    (University of Magdeburg)

  • F. Hof

    (Vienna University of Technology)

  • W. Lutz

    (International Institute for Applied Systems Analysis)

Abstract

We consider a three sector demoeconomic model and its interdependence with the accumulation of human capital and resources. The primary sector harvests a renewable resource which constitutes the input into industrial production, the secondary sector of our economy. Both sectors are always affected by the stock of knowledge. The tertiary sector is responsible for the accumulation of this stock that represents a public good for all three sectors. Labour is divided up between the three sectors under the assumption of competitive labour markets. The economy exhibits two externalities – free access to renewable resource harvesting and the existence of a public stock of knowledge – that are not properly reflected in competitive markets. We internalize these externalities by taxing the output of the primary sector and use these taxes together with taxes on labour income to finance the inputs of the tertiary sector. The central focus of this study is whether and what kind of interactions between the economy, the population and the environment foster sustainability and if possible, continuous growth.

Suggested Citation

  • A. Prskawetz & G. Feichtinger & M. Luptacik & A. Milik & F. Wirl & F. Hof & W. Lutz, 1998. "Endogenous Growth of Population and Income Depending on Resource and Knowledge," European Journal of Population, Springer;European Association for Population Studies, vol. 14(4), pages 305-331, December.
    • Handle: RePEc:spr:eurpop:v:14:y:1998:i:4:d:10.1023_a:1026455314994
    DOI: 10.1023/A:1026455314994
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    References listed on IDEAS

    as
    1. Rosenzweig, Mark R, 1990. "Population Growth and Human Capital Investments: Theory and Evidence," Journal of Political Economy, University of Chicago Press, vol. 98(5), pages 38-70, October.
    2. Hazledine, Tim & Moreland, R Scott, 1977. "Population and Economic Growth: A World Cross-Section Study," The Review of Economics and Statistics, MIT Press, vol. 59(3), pages 253-263, August.
    3. repec:bla:econom:v:59:y:1992:i:236:p:421-35 is not listed on IDEAS
    4. Raymond Gradus & Sjak Smulders, 1993. "The trade-off between environmental care and long-term growth—Pollution in three prototype growth models," Journal of Economics, Springer, vol. 58(1), pages 25-51, February.
    5. Tahvonen, Olli & Withagen, Cees, 1996. "Optimality of irreversible pollution accumulation," Journal of Economic Dynamics and Control, Elsevier, vol. 20(9-10), pages 1775-1795.
    6. Hartwick, John M., 1992. "Endogenous growth with public education," Economics Letters, Elsevier, vol. 39(4), pages 493-497, August.
    7. Michael Kremer, 1993. "Population Growth and Technological Change: One Million B.C. to 1990," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 108(3), pages 681-716.
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    Cited by:

    1. Alexia Prskawetz & Gunter Steinmann & Gustav Feichtinger, 1998. "A model on the escape from the Malthusian trap," Journal of Population Economics, Springer;European Society for Population Economics, vol. 11(4), pages 535-550.

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    More about this item

    Keywords

    algebraic differential equations; endogenous growth; local bifurcation; population; resource; technology;
    All these keywords.

    JEL classification:

    • O41 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - One, Two, and Multisector Growth Models
    • J19 - Labor and Demographic Economics - - Demographic Economics - - - Other
    • Q29 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Other

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