On the Mechanics of Economic Development and Non-Development
Holger Strulik ()
Quantitative Macroeconomics Working Papers from Hamburg University, Department of Economics
Young adults observe the current interest rate, wage rate, and child mortality and decide about savings and the quantity and quality of their children. Human capital is produced as an external effect of expenditure on child quality and its production is subject to decreasing returns. Depending on the economic environment individuals decide on one of three different lifestyles. The first one generates stabilization at a low income level and high population growth, the second one generates the demographic transition and the third one perpetual growth of a modern economy. If the switch from Malthusian expansion in size towards demographic transition is not generated endogenously, a properly timed development program on education can manage the escape from the low-income equilibrium.
References: Add references at CitEc
Citations: Track citations by RSS feed
Downloads: (external link)
Our link check indicates that this URL is bad, the error code is: 404 Not Found (http://www.rrz.uni-hamburg.de/wst/qmwps/qm799.ps [302 Found]--> https://www.rrz.uni-hamburg.de/wst/qmwps/qm799.ps)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:ham:qmwops:19911
Access Statistics for this paper
More papers in Quantitative Macroeconomics Working Papers from Hamburg University, Department of Economics Contact information at EDIRC.
Bibliographic data for series maintained by ().