Poverty Trap and Endogenous Population

Nguyen Manh Hung and Paul Makdissi ()

Cahiers de recherche from Université Laval - Département d'économique

Abstract:

In this paper, we develop a growth model in which human being is a production factor which can be combined with a fixed factor, say land, to produce a homogeneous commodity. Saving, so to speak, can only be made through having children, the number of which is an endogenous decision to the household. In this context, we show that the economy may run into a poverty trap with a subsistence level per capita consumption. However, we also demonstrate that the economy can escape from this unappealing long run situation through a suitable technological shift or an appropriate child- rearing tax. For such an escape, the technological shift must be non-neutral in the sense that it modifies the ratio of factor's marginal productivity.

Keywords: Poverty trap; Endogenous population; Endogenous growth (search for similar items in EconPapers)
JEL-codes: J11 O11 O40 (search for similar items in EconPapers)
Date: 1999
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Related works:
Working Paper: Poverty Trap and Endogenous Population (2001)
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Persistent link: https://EconPapers.repec.org/RePEc:lvl:laeccr:9916

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