Fertility Choice and Semi-Endogenous Growth: Where Becker Meets Jones

Jakub Growiec ()

The B.E. Journal of Macroeconomics, 2006, vol. topics.6, issue 2

Abstract: We introduce fertility choice into an R&D-based semi-endogenous growth model so that the economy's long-run growth rate is again fully endogenously determined. The ultimate growth engine is located in the population equation of the model ("people reproduce in proportion to their number"), and R&D carries population growth forward to GDP growth. We indicate the problems stemming from the fact that in the considered class of models, population size ought to enter the utility functional multiplicatively. In particular, we show that second order optimality conditions need not hold and flow utility is required to be positive (levels of utility matter). A simplified "Barro–Becker–Jones" model which we put forward, reconciles these problems, yields a stable long-run fertility rate and thus an asymptotic BGP, and is open to further generalizations.

Keywords: fertility choice; semi-endogenous growth; R&D; long-run dynamics; second order conditions (search for similar items in EconPapers)
JEL-codes: J13 O41 (search for similar items in EconPapers)
Date: 2006

Downloads: (external link)
http://www.bepress.com/cgi/viewcontent.cgi?article=1407&context=bejm (application/pdf)

Related works:
Working Paper: Fertility choice and semi-endogenous growth: where Becker meets Jones (2006)
Working Paper: Fertility Choice and Semi-Endogenous Growth: Where Becker Meets Jones (2006)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: http://EconPapers.repec.org/RePEc:bpj:bejmac:v:topics.6:y:2006:i:2:n:10

Access Statistics for this article

More articles in The B.E. Journal of Macroeconomics from Berkeley Electronic Press
Series data maintained by Avi Warner ().