Demographic Change and R&D‐Based Economic Growth

15 Pages Posted: 1 Sep 2017

See all articles by Klaus Prettner

Klaus Prettner

Institute of Economics; University of Goettingen (Gottingen); University of Vienna - Austrian Academy of Sciences; Vienna University of Technology - Institute for Mathematical Methods in Economics

Timo Trimborn

University of Goettingen (Gottingen)

Date Written: October 2017

Abstract

In the second half of the 20th century, most industrialized countries experienced declining fertility, rising life expectancy and a slowdown of population growth. Standard models of R&D‐based growth predict that a decline in population growth reduces economic growth. We argue that this implication hinges on the assumption of infinitely lived individuals. The semi‐endogenous growth model with overlapping generations that we propose implies a negative relationship between population growth and economic growth during a substantial part of the transitional dynamics if the decline in population growth is accompanied by an increase in life expectancy as observed in industrialized countries.

Suggested Citation

Prettner, Klaus and Trimborn, Timo, Demographic Change and R&D‐Based Economic Growth (October 2017). Economica, Vol. 84, Issue 336, pp. 667-681, 2017. Available at SSRN: https://ssrn.com/abstract=3030449 or http://dx.doi.org/10.1111/ecca.12195

Klaus Prettner (Contact Author)

Institute of Economics ( email )

Fruwirthstr. 48
Stuttgart, 70599
Germany

University of Goettingen (Gottingen) ( email )

Platz der Gottinger Sieben 3
Gottingen, D-37073
Germany

University of Vienna - Austrian Academy of Sciences ( email )

Sonnenfelsgasse 19/2
Wien, Osterreich A-1010
Austria

Vienna University of Technology - Institute for Mathematical Methods in Economics ( email )

Argentinierstr. 8
Vienna, 1040
Austria

Timo Trimborn

University of Goettingen (Gottingen) ( email )

Platz der Gottinger Sieben 3
Gottingen, D-37073
Germany

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