The Mankiw-Romer-Weil Model with Decreasing Population Growth Rate

13 Pages Posted: 21 Oct 2016

See all articles by Juan Gabriel Brida

Juan Gabriel Brida

Universidad de la República

Gaston Cayssials

Universidad de la Republica - Facultad de Ciencias Económicas y de Administración

Date Written: October 20, 2016

Abstract

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

Suggested Citation

Brida, Juan Gabriel and Cayssials, Gaston, The Mankiw-Romer-Weil Model with Decreasing Population Growth Rate (October 20, 2016). Available at SSRN: https://ssrn.com/abstract=2856351 or http://dx.doi.org/10.2139/ssrn.2856351

Juan Gabriel Brida

Universidad de la República ( email )

Av. 18 de Julio
Montevideo, 1968
Uruguay

Gaston Cayssials (Contact Author)

Universidad de la Republica - Facultad de Ciencias Económicas y de Administración ( email )

Gonzalo Ramirez 1926
Montevideo, 11200
Uruguay

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