Human Capital-based Growth with Depopulation and Class-size Effects: Theory and Empirics

Alberto Bucci (), Lorenzo Carbonari, Giovanni Trovato () and Pedro Trivin
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Giovanni Trovato: Dipartimento di Economia e Finanza, Università degli Studi di Roma “Tor Vergata”, Italy

Working Paper series from Rimini Centre for Economic Analysis

Abstract: Building on Lucas (1988), we develop a model in which the impact of population dynamics on per capita GDP and human capital depends on the balance of intertemporal altruism effects towards future generations and class-size effects on an individual’s education investment. We show that there is a critical level of the class-size effect that determines whether a decline in population growth will lead to a decrease or an increase in a country’s long-run growth rate of real per capita income. We take the model to OECD data, using a semi-parametric technique. This allows us to classify countries into groups based on their long-term growth trajectories, revealing patterns not captured by previous studies on the topic.

Keywords: Long-run economic growth; Depopulation; Class-size effects; Human capital investment (search for similar items in EconPapers)
JEL-codes: J11 O11 O41 (search for similar items in EconPapers)
Date: 2024-04
New Economics Papers: this item is included in nep-gro
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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http://rcea.org/RePEc/pdf/wp24-05.pdf

Related works:
Working Paper: Human Capital-based Growth with Depopulation and Class-size Effects: Theory and Empirics (2024)
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Persistent link: https://EconPapers.repec.org/RePEc:rim:rimwps:24-05

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