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Population Growth and Human Capital: A Welfarist Approach
Author(s) -
Renström Thomas I.,
Spataro Luca
Publication year - 2015
Publication title -
the manchester school
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.361
H-Index - 42
eISSN - 1467-9957
pISSN - 1463-6786
DOI - 10.1111/manc.12110
Subject(s) - economics , endogenous growth theory , population growth , human capital , population , utilitarianism , overlapping generations model , capital accumulation , growth model , microeconomics , econometrics , economic growth , demography , sociology , political science , law
In this paper, we investigate the relationship between economic and population growth in an endogenous growth model driven by human capital accumulation Because we allow for endogenous population growth, we adopt the population criterion “Relative Critical Level Utilitarianism”, which allows the critical level utility to depend on parents' well‐being. In this scenario, we investigate the equilibrium relationship between economic growth and population growth and we provide the conditions for the economic take‐off to occur. A simulation analysis calibrated on developing countries shows that the model has the potential to explain the dynamics of the latter variables experienced by those countries.