A note on demographic shocks in a multi-sector growth model

Simone Marsiglio and Davide La Torre

Economics Bulletin, 2012, vol. 32, issue 3, 2293-2299

Abstract: We introduce demographic shocks in a multi-sector endogenous growth model, a-la Uzawa-Lucas. We show that an analytical solution of the stochastic problem can be found, under the restriction that the capital share equals both the inverse of the intertemporal elasticity of substitution and the degree of altruism. We show that uncertainty lowers the optimal levels of consumption and the physical capital stock, while they do not a ffect the share of human capital employed in production.

Keywords: Demographic shocks; Economic growth; Closed-form Solution (search for similar items in EconPapers)
JEL-codes: J1 O4 (search for similar items in EconPapers)
Date: 2012-08-21
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Citations: View citations in EconPapers (6)

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