The Solow Model With Logistic Manpower: A Stability Analysis

Journal of World Economics Review, Vol. 3, No. 2, pp. 161-166, 2008

7 Pages Posted: 24 Aug 2005 Last revised: 5 Jun 2011

See all articles by Daniele Ritelli

Daniele Ritelli

University of Bologna - Department of Mathematics for Economic and Social Sciences

Giovanni Mingari Scarpello

Free University of Bozen-Bolzano

Juan Gabriel Brida

Universidad de la Rep├║blica

Date Written: August 1, 2005

Abstract

In standard economic growth theory it is assumed that labour force follows exponential growth, a not realistic assumption. As described in, for example, Maynard Smith, Ref. 1, the growth of natural populations is more accurately depicted by a logistic growth law. This paper analyzes how neoclassic Solow-Swan model, see Ref. 2 and Ref. 3, is affected by logistic growth of population, comparing it with classic malthusian model. We show that with the logistic law, the intrinsic rate of population growth plays no role in determining long run equilibrium per worker level of capital. In addition, we tackle the stability of the model setting off its long run equilibrium against the steady state of the traditional one.

Keywords: Solow-Swan model, logistic growth law

JEL Classification: C62, O41

Suggested Citation

Ritelli, Daniele and Mingari Scarpello, Giovanni and Brida, Juan Gabriel, The Solow Model With Logistic Manpower: A Stability Analysis (August 1, 2005). Journal of World Economics Review, Vol. 3, No. 2, pp. 161-166, 2008. Available at SSRN: https://ssrn.com/abstract=785665

Daniele Ritelli

University of Bologna - Department of Mathematics for Economic and Social Sciences ( email )

Piazza Scaravilli 2
40139 Bologna
Italy

Giovanni Mingari Scarpello

Free University of Bozen-Bolzano ( email )

Via Sernesi 1
39100 Bolzano
Italy

Juan Gabriel Brida (Contact Author)

Universidad de la Rep├║blica ( email )

Av. 18 de Julio
Montevideo, 1968
Uruguay

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