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Mankiw-Romer-Weil Model with Declining Population: A Note

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  • Sasaki, Hiroaki
  • Hori, Taichi
  • Hasegawa, Rokuhisa
  • Tajiri, Shigehiro
  • Nakamura, Kaito

Abstract

This study examines how the long-run growth rate of per capita income is determined when population growth is negative. It uses the augmented Solow growth model as a tool for this investigation. The results reveal four distinct types of dynamics, depending on the parameter combinations. In all these dynamics, the long-run growth rate of per capita income remains positive. This finding implies that sustainable growth in per capita income is achievable, even in the context of negative population growth.

Suggested Citation

  • Sasaki, Hiroaki & Hori, Taichi & Hasegawa, Rokuhisa & Tajiri, Shigehiro & Nakamura, Kaito, 2023. "Mankiw-Romer-Weil Model with Declining Population: A Note," MPRA Paper 119457, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:119457
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    References listed on IDEAS

    as
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    4. Ichiroh Daitoh, 2020. "Rates of Population Decline in Solow and Semi-Endogenous Growth Models: Empirical Relevance and the Role of Child Rearing Cost," Keio-IES Discussion Paper Series 2020-004, Institute for Economics Studies, Keio University.
    5. Elgin, Ceyhun & Tumen, Semih, 2012. "Can sustained economic growth and declining population coexist?," Economic Modelling, Elsevier, vol. 29(5), pages 1899-1908.
    6. N. Gregory Mankiw & David Romer & David N. Weil, 1992. "A Contribution to the Empirics of Economic Growth," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 107(2), pages 407-437.
    7. Charles I. Jones, 2022. "The End of Economic Growth? Unintended Consequences of a Declining Population," American Economic Review, American Economic Association, vol. 112(11), pages 3489-3527, November.
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    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    augmented Solow model; human capital accumulation; declining population;
    All these keywords.

    JEL classification:

    • J11 - Labor and Demographic Economics - - Demographic Economics - - - Demographic Trends, Macroeconomic Effects, and Forecasts
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration
    • O41 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - One, Two, and Multisector Growth Models

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