IDEAS home Printed from https://ideas.repec.org/p/abn/wpaper/auwp2016-03.html
   My bibliography  Save this paper

Dynastic Altruism, Population Growth, and Economic Prosperity

Author

Listed:
  • Bharat Diwakar
  • Gilad Sorek

Abstract

We show that non-linear dynastic altruism toward future generations yields non-monotonic relation between population growth and economic prosperity, which is polynomial in general. The exact shape of this non-monotonic relation depends on the concavity of parental altruistic utility. Hence, this work contributes to the recent line of modified R&D-based growth models, aimed to align theory with empirical evidence on non-linear relation between population growth and economic prosperity.

Suggested Citation

  • Bharat Diwakar & Gilad Sorek, 2016. "Dynastic Altruism, Population Growth, and Economic Prosperity," Auburn Economics Working Paper Series auwp2016-03, Department of Economics, Auburn University.
    • Handle: RePEc:abn:wpaper:auwp2016-03
    as

    Download full text from publisher

    File URL: https://cla.auburn.edu/econwp/Archives/2016/2016-03.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Gary S. Becker & Robert J. Barro, 1988. "A Reformulation of the Economic Theory of Fertility," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 103(1), pages 1-25.
    2. Dalgaard, Carl-Johan & Kreiner, Claus Thustrup, 2001. "Is Declining Productivity Inevitable?," Journal of Economic Growth, Springer, vol. 6(3), pages 187-203, September.
    3. Gary S. Becker & Kevin M. Murphy & Robert Tamura, 1994. "Human Capital, Fertility, and Economic Growth," NBER Chapters, in: Human Capital: A Theoretical and Empirical Analysis with Special Reference to Education, Third Edition, pages 323-350, National Bureau of Economic Research, Inc.
    4. Holger Strulik & Klaus Prettner & Alexia Prskawetz, 2013. "The past and future of knowledge-based growth," Journal of Economic Growth, Springer, vol. 18(4), pages 411-437, December.
    5. Barro, Robert J & Becker, Gary S, 1989. "Fertility Choice in a Model of Economic Growth," Econometrica, Econometric Society, vol. 57(2), pages 481-501, March.
    6. Kelley, Allen C. & Schmidt, Robert M., 1995. "Aggregate Population and Economic Growth Correlations: The Role of the Components of Demographic Change," Working Papers 95-37, Duke University, Department of Economics.
    7. Becker, Gary S, 1992. "Fertility and the Economy," Journal of Population Economics, Springer;European Society for Population Economics, vol. 5(3), pages 185-201, August.
    8. Boikos, Spyridon & Bucci, Alberto & Stengos, Thanasis, 2013. "Non-monotonicity of fertility in human capital accumulation and economic growth," Journal of Macroeconomics, Elsevier, vol. 38(PA), pages 44-59.
    9. Gary S. Becker & Nigel Tomes, 1994. "Human Capital and the Rise and Fall of Families," NBER Chapters, in: Human Capital: A Theoretical and Empirical Analysis with Special Reference to Education, Third Edition, pages 257-298, National Bureau of Economic Research, Inc.
    10. Bucci, Alberto, 2008. "Population growth in a model of economic growth with human capital accumulation and horizontal R&D," Journal of Macroeconomics, Elsevier, vol. 30(3), pages 1124-1147, September.
    11. Bucci, Alberto, 2013. "Returns to specialization, competition, population, and growth," Journal of Economic Dynamics and Control, Elsevier, vol. 37(10), pages 2023-2040.
    12. Holger Strulik, 2005. "The Role of Human Capital and Population Growth in R&D‐based Models of Economic Growth," Review of International Economics, Wiley Blackwell, vol. 13(1), pages 129-145, February.
    13. Prettner, Klaus, 2014. "The non-monotonous impact of population growth on economic prosperity," Economics Letters, Elsevier, vol. 124(1), pages 93-95.
    14. Allen Kelley & Robert Schmidt, 1995. "Aggregate population and economic growth correlations: The role of the components of demographic change," Demography, Springer;Population Association of America (PAA), vol. 32(4), pages 543-555, November.
    15. Lucas, Robert Jr., 1988. "On the mechanics of economic development," Journal of Monetary Economics, Elsevier, vol. 22(1), pages 3-42, July.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Bharat Diwakar & Gilad Sorek, 2016. "Life-Cycle Saving, Bequests, and the Role of Population in R&D-based Growth," Auburn Economics Working Paper Series auwp2016-05, Department of Economics, Auburn University.
    2. Gilad Sorek & Bharat Diwakar, 2017. "Weak Scale Effects in Overlapping Generations Economy," Economics Bulletin, AccessEcon, vol. 37(2), pages 962-969.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Bharat Diwakar & Gilad Sorek, 2016. "Dynastic Altruism, Population, and R&D based Growth," Economics Bulletin, AccessEcon, vol. 36(4), pages 2003-2009.
    2. Bharat Diwakar & Gilad Sorek, 2016. "Human-Capital Spillover, Population, and Economic Growth," Auburn Economics Working Paper Series auwp2016-02, Department of Economics, Auburn University.
    3. Prettner, Klaus, 2016. "The implications of automation for economic growth and the labor share of income," ECON WPS - Working Papers in Economic Theory and Policy 04/2016, TU Wien, Institute of Statistics and Mathematical Methods in Economics, Economics Research Unit.
    4. Gilad Sorek & Bharat Diwakar, 2017. "Weak Scale Effects in Overlapping Generations Economy," Economics Bulletin, AccessEcon, vol. 37(2), pages 962-969.
    5. Alberto Bucci & Klaus Prettner, 2020. "Endogenous education and the reversal in the relationship between fertility and economic growth," Journal of Population Economics, Springer;European Society for Population Economics, vol. 33(3), pages 1025-1068, July.
    6. Boucekkine, R. & Martínez, B. & Ruiz-Tamarit, J.R., 2013. "Growth vs. level effect of population change on economic development: An inspection into human-capital-related mechanisms," Journal of Mathematical Economics, Elsevier, vol. 49(4), pages 312-334.
    7. Bucci Alberto & Raurich Xavier, 2017. "Population and Economic Growth Under Different Growth Engines," German Economic Review, De Gruyter, vol. 18(2), pages 182-211, May.
    8. Bharat Diwakar & Gilad Sorek, 2016. "Life-Cycle Saving, Bequests, and the Role of Population in R&D-based Growth," Auburn Economics Working Paper Series auwp2016-05, Department of Economics, Auburn University.
    9. Ziesemer, Thomas, 2019. "Can we have growth when population is stagnant? Testing linear growth rate formulas and their cross-unit cointegration of non-scale endogenous growth models," MERIT Working Papers 2019-021, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
    10. Thomas H.W. Ziesemer, 2020. "Can we have growth when population is stagnant? Testing linear growth rate formulas of non-scale endogenous growth models," Applied Economics, Taylor & Francis Journals, vol. 52(13), pages 1502-1516, March.
    11. Bucci, Alberto & Eraydın, Levent & Müller, Moritz, 2019. "Dilution effects, population growth and economic growth under human capital accumulation and endogenous technological change," Journal of Macroeconomics, Elsevier, vol. 62(C).
    12. Diwakar Bharat & Sorek Gilad, 2017. "Human-capital spillover, population and R&D-based growth," The B.E. Journal of Macroeconomics, De Gruyter, vol. 17(1), pages 1-17, January.
    13. Ziesemer, Thomas, 2017. "Testing linear growth rate formulas of non-scale endogenous growth models," MERIT Working Papers 2017-036, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
    14. Boikos, Spyridon & Bucci, Alberto & Stengos, Thanasis, 2013. "Non-monotonicity of fertility in human capital accumulation and economic growth," Journal of Macroeconomics, Elsevier, vol. 38(PA), pages 44-59.
    15. Ken-ichi Hashimoto & Ken Tabata, 2013. "Rising Longevity, Human Capital and Fertility in Overlapping Generations Version of an R&D-based Growth Model," Discussion Paper Series 104, School of Economics, Kwansei Gakuin University, revised May 2013.
    16. repec:ebl:ecbull:v:15:y:2007:i:8:p:1-7 is not listed on IDEAS
    17. Prettner, Klaus & Werner, Katharina, 2016. "Why it pays off to pay us well: The impact of basic research on economic growth and welfare," Research Policy, Elsevier, vol. 45(5), pages 1075-1090.
    18. Frederic Tournemaine & Pongsak Luangaram, 2012. "R&D, human capital, fertility, and growth," Journal of Population Economics, Springer;European Society for Population Economics, vol. 25(3), pages 923-953, July.
    19. Michael Grimm, 2003. "Family and economic growth: A review," Mathematical Population Studies, Taylor & Francis Journals, vol. 10(3), pages 145-173.
    20. Klaus Prettner & Alexia Prskawetz, 2010. "Demographic change in models of endogenous economic growth. A survey," Central European Journal of Operations Research, Springer;Slovak Society for Operations Research;Hungarian Operational Research Society;Czech Society for Operations Research;Österr. Gesellschaft für Operations Research (ÖGOR);Slovenian Society Informatika - Section for Operational Research;Croatian Operational Research Society, vol. 18(4), pages 593-608, December.
    21. Lehmann-Hasemeyer, Sibylle & Prettner, Klaus & Tscheuschner, Paul, 2023. "The scientific revolution and its implications for long-run economic development," World Development, Elsevier, vol. 168(C).

    More about this item

    Keywords

    Dynastic Altruism; Population Growth; Technological Progress;
    All these keywords.

    JEL classification:

    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives
    • O40 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - General

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:abn:wpaper:auwp2016-03. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Hyeongwoo Kim (email available below). General contact details of provider: https://edirc.repec.org/data/deaubus.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.