The long-run relationship between per capita incomes and population size

Maya Eden and Kevin Kuruc

No 18353, CEPR Discussion Papers from Centre for Economic Policy Research

Abstract: The relationship between human population sizes and per capita income has been long debated. Two competing forces feature prominently in these discussions. On the one hand, a larger population means that limited natural resources must be shared among more people. On the other hand, more people means more innovation and faster technological progress, other things equal. We study a model that features both of these channels. A calibration suggests that, in the long-run, the relationship between population and income per-capita is positive.

Date: 2023-08
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