The Mankiw-Romer-Weil Model with Decreasing Population Growth Rate
13 Pages Posted: 21 Oct 2016
Date Written: October 20, 2016
This paper studies an extension of the Mankiw-Romer-Weil growth model by departing from the standard assumption of constant population growth rate. More concretely, this rate is assumed to be decreasing over time and a general population growth law verifying this characteristic is introduced. In this setup, the model can be represented by a three dimensional dynamical system which admits a unique solution for any initial condition. It is shown that there is a unique nontrivial equilibrium which is a global attractor. In addition, the speed of convergence to the steady state is characterized, showing that in this model this velocity is lower than in the original Mankiw-Romer-Weil model.
Keywords: Mankiw-Romer-Weil economic growth model; decreasing population growth rate; speed of convergence
JEL Classification: C62; O41
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