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

Sasaki, Hiroaki and Hori, Taichi and Hasegawa, Rokuhisa and Tajiri, Shigehiro and Nakamura, Kaito (2023): Mankiw-Romer-Weil Model with Declining Population: A Note.

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.

• Item Type: MPRA Paper
• Language: English
• Keywords: augmented Solow model; human capital accumulation; declining population
• Subjects: J - Labor and Demographic Economics > J1 - Demographic Economics > J11 - Demographic Trends, Macroeconomic Effects, and Forecasts; O - Economic Development, Innovation, Technological Change, and Growth > O1 - Economic Development > O15 - Human Resources ; Human Development ; Income Distribution ; Migration; O - Economic Development, Innovation, Technological Change, and Growth > O4 - Economic Growth and Aggregate Productivity > O41 - One, Two, and Multisector Growth Models

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