Growth vs. level effect of population change on economic development: an inspection into human-capital-related mechanisms (Q387332)

The authors analytically study ``the short- and long-run impact of two demographic variables (population size and the rate of growth of population) on two kind of economic variables (the rate of growth of the economy and the level of the essential economic indicators) in a growth model based on the accumulation of human capital.''NEWLINENEWLINE In the second section they consider the Uzawa-Lucas two-sector endogenous growth model. They assume that the economy is closed with competitive markets and populated with many identical, rational agents. In the third section they ``show in closed-form the solution path for the variables of the model,'' when they ``substitute the exogenous population level assuming an exponential process.'' In the next section the authors ``start a complete study of the long-run relationship between population, per capita income, and growth.'' In the fifth section they ``concentrate on the long-run level of the variables per capita narrow (market) output, per capita broad (aggregate) output, and human capital level of a representative worker.''NEWLINENEWLINE In the next two sections the authors ``concentrate on the consequences of population size on the long-run level of the variables, per capita income (narrow output), per capita broad output, and human capital level of a representative worker.'' Moreover, they ``study how demographic changes affect the main economic variables of the model along the transition to the balanced growth path.'' They ``examine the consequences of two demographic shocks: changes in the rate of population growth and changes in the initial population size, on the short-run trajectories of physical capital, human capital, income, and broad output.''