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The Optimum Growth Rate for Population Reconsidered

Author

Listed:
  • Klaus Jaeger
  • Wolfgang Kuhle

    (Munich Center for the Economics of Aging (MEA))

Abstract

This article gives exact general conditions for the existence of an interior optimum growth rate for population in the neoclassical two-generations-overlapping model. In an economy where high (low) growth rates of population lead to a growth path which is efficient (inefficient) there always exists an interior optimum growth rate for population. In all other cases there exists no interior optimum. The Serendipity Theorem, however, does in general not hold in an economy with government debt. Moreover, the growth rate for population which leads an economy with debt to a golden rule allocation can never be optimal.

Suggested Citation

  • Klaus Jaeger & Wolfgang Kuhle, 2007. "The Optimum Growth Rate for Population Reconsidered," MEA discussion paper series 07147, Munich Center for the Economics of Aging (MEA) at the Max Planck Institute for Social Law and Social Policy.
    • Handle: RePEc:mea:meawpa:07147
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    References listed on IDEAS

    as
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