A Growth Model with Population Endogenous
Abstract
In this study we consider the stability conditions and equilibrium properties of a long-run model of economic growth in which population and labor force are endogenous. Our way of formulating the stability conditions of this model in terms of deviations from a trend solution enables us to relate the model to a variety of historical data and to begin to explore the disequilibrium properties of the model. An additional purpose of this study is to show how sensitive the model is to specification changes. The prime example of this is our finding that the stability of the model with endogenous population and labor force requires the rates of growth of the birth rate and per capita income to be negatively related.
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