Long-run consequences of population decline in an economy with exhaustible resources

Kazuo Mino and Hiroaki Sasaki

Economic Modelling, 2023, vol. 121, issue C

Abstract: This study explores how population decline affects the long-run performance of an economy in which exhaustible resources are indispensable for production. Using a one-sector neoclassical growth model with external increasing returns, we examine the conditions under which the expansion of per capita income and consumption can be sustained in the long-run equilibrium. We find that population decline, rather than exhaustible resources, can terminate the persistent growth in per capita income and consumption.

Keywords: Exhaustible resources; Population decline; Long-run growth; External increasing returns (search for similar items in EconPapers)
JEL-codes: O13 O44 Q32 Q43 (search for similar items in EconPapers)
Date: 2023
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:ecmode:v:121:y:2023:i:c:s026499932300024x

DOI: 10.1016/j.econmod.2023.106212

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