The Solow Model in Discrete Time and Decreasing Population Growth Rate

Economics Bulletin, Vol. 3, No. 41, pp. 1-14, 2008

14 Pages Posted: 2 Nov 2007 Last revised: 6 Mar 2018

See all articles by Juan Gabriel Brida

Juan Gabriel Brida

Universidad de la República

Juan Sebastián Pereyra

Universidad de la República - Facultad de Ciencias Económicas; El Colegio de México

Date Written: October 21, 2007

Abstract

This paper reformulates the neoclassical Solow model of economic growth in discrete time by introducing a generic population growth law that verifies the following properties: 1) population is strictly increasing and bounded; 2) the rate of growth of population is decreasing to zero as time tends to infinity. We show that in the long run the capital per worker of the model converges to the non-trivial steady state of the Solow-Swan model with zero labor growth rate. In addition we prove that the solutions of the model are asymptotically stable.

Keywords: Solow model, discrete time, population model

JEL Classification: C62, O41

Suggested Citation

Brida, Juan Gabriel and Pereyra, Juan Sebastián, The Solow Model in Discrete Time and Decreasing Population Growth Rate (October 21, 2007). Economics Bulletin, Vol. 3, No. 41, pp. 1-14, 2008 . Available at SSRN: https://ssrn.com/abstract=1026077

Juan Gabriel Brida (Contact Author)

Universidad de la República ( email )

Av. 18 de Julio
Montevideo, 1968
Uruguay

Juan Sebastián Pereyra

Universidad de la República - Facultad de Ciencias Económicas ( email )

Gonzalo Ramírez 1926
CP 11200 Montevideo
Uruguay

El Colegio de México ( email )

Gonzalo Ramírez 1926
CP 11200 Montevideo
Uruguay

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