Capital Accumulation and Population Growth in Two Sector Closed and Open Economies

1989 ◽  
pp. 94-115
Author(s):  
Benjamin Bental
Keyword(s):  
Population Growth ◽  
Capital Accumulation ◽  
Open Economies

“THE MERCHANTS OF CADIZ AND LISBON”: PARSIMONY, THE RATE OF PROFIT, AND ACCUMULATION IN WEALTH OF NATIONS

2013 ◽  
Vol 35 (1) ◽  
pp. 63-76 ◽  
Author(s):  
A.M.C. WATERMAN
Keyword(s):  
Population Growth ◽  
Capital Accumulation ◽  
Causal Relation ◽  
High Income ◽  
High Rate ◽  
Wealth Of Nations ◽  
Rate Of Profit ◽  
Negative Growth

In Wealth of Nations, a high rate of profit is associated with sluggish or even negative growth, and vice versa. This is because capital accumulation (and therefore population growth) is driven by parsimony of the masters; and the incentive to self-denial is eroded by a high income too easily obtained. The causal relation between parsimony, the rate of profit, and accumulation is explicated in this article; Adam Smith’s observations concerning “the merchants of Cadiz and Lisbon” examined critically; and some conjectures offered as to why Smith’s successors should have rejected parsimony as a useful concept.

On the Effectiveness of Growth- Enhancing Policies in a Model of Growth Without Scale Effects

2002 ◽  
Vol 3 (3) ◽  
pp. 339-346 ◽  
Author(s):  
Lutz G. Arnold
Keyword(s):  
Economic Growth ◽  
Growth Rate ◽  
Human Capital ◽  
Population Growth ◽  
Capital Accumulation ◽  
Scale Effects ◽  
Growth Models ◽  
Empirical Studies ◽  
Human Capital Accumulation ◽  
Accelerate Growth

Abstract Standard R&D growth models have two disturbing properties: the presence of scale effects (i.e., the prediction that larger economies grow faster) and the implication that there is a multitude of growth-enhancing policies. Recent models of growth without scale effects, such as Segerstrom's (1998), not only remove the counterfactual scale effect, but also imply that the growth rate does not react to any kind of economic policy. They share a different disturbing property, however: economic growth depends positively on population growth, and the economy cannot grow in the absence of population growth. The present paper integrates human capital accumulation into Segerstrom's (1998) model of growth without scale effects. Consistent with many empirical studies, growth is positively related not to population growth, but to investment in human capital. And there is one way to accelerate growth: subsidizing education.

scholarly journals The Dynamics of a Spatial Economic Model with Bounded Population Growth

2021 ◽  
Vol 2021 ◽  
pp. 1-11
Author(s):  
Yue Zhong
Keyword(s):  
Economic Growth ◽  
Population Growth ◽  
Growth Model ◽  
Explicit Solution ◽  
Capital Accumulation ◽  
Initial Distribution ◽  
Time Behavior ◽  
Continuous Space ◽  
Infinite Dimensional ◽  
Economic Growth Model

We investigate a spatial economic growth model with bounded population growth to obtain the asymptotic behavior of detrended capital in a continuous space. The formation of capital accumulation is expressed by a partial differential equation with corresponding boundary conditions. The capital accumulation interacts with the morphology to affect the optimal dynamics of economic growth. After redrafting the spatial growth model in the infinite dimensional Hilbert space, we identify the unique optimal control and value function when the bounded population growth is considered. With nonnegative initial distribution of capital, the explicit solution of the model is obtained. The time behavior of the explicit solution guarantees the convergence issue of the detrended capital level across space and time.

A NOTE ON THE IMPLICATIONS OF AUTOMATION FOR ECONOMIC GROWTH AND THE LABOR SHARE

2017 ◽  
Vol 23 (3) ◽  
pp. 1294-1301 ◽  
Author(s):  
Klaus Prettner
Keyword(s):  
United States ◽  
Economic Growth ◽  
Growth Rate ◽  
Population Growth ◽  
Capital Accumulation ◽  
Technological Progress ◽  
The United States ◽  
Economic Growth Rate ◽  
Labor Share ◽  
Long Run

We introduce automation into a standard model of capital accumulation and show that (i) there is the possibility of perpetual growth, even in the absence of technological progress; (ii) the long-run economic growth rate declines with population growth, which is consistent with the available empirical evidence; (iii) there is a unique share of savings diverted to automation that maximizes long-run growth; and (iv) automation explains around 14% of the observed decline of the labor share over the last decades in the United States.

scholarly journals Population and Economic Growth Under Different Growth Engines

2017 ◽  
Vol 18 (2) ◽  
pp. 182-211 ◽  
Author(s):  
Alberto Bucci ◽  
Xavier Raurich
Keyword(s):  
Economic Growth ◽  
Growth Rate ◽  
Human Capital ◽  
Population Growth ◽  
Capital Accumulation ◽  
Capital Investment ◽  
Human Capital Investment ◽  
Physical Capital ◽  
Long Run

Abstract Using a growth model with physical capital accumulation, human capital investment and horizontal R&D activity, this paper proposes an alternative channel through which an increase in the population growth rate may yield a non-uniform (i.e., a positive, negative, or neutral) impact on the long-run growth rate of per-capita GDP, as available empirical evidence seems mostly to suggest. The proposed mechanism relies on the nature of the process of economic growth (whether it is fully or semi-endogenous), and the peculiar engine(s) driving economic growth (human capital investment, R&D activity, or both). The model also explains why in the long term the association between population growth and productivity growth may ultimately be negative when R&D is an engine of economic growth.

Corruption and Openness

2008 ◽  
Vol 8 (1) ◽  
Author(s):  
Zvika Neeman ◽  
M. Daniele Paserman ◽  
Avi Simhon
Keyword(s):  
Capital Accumulation ◽  
Open Economies ◽  
Main Channel ◽  
Financial Openness ◽  
Empirical Observation ◽  
Poor Countries ◽  
Closed Economies ◽  
Alternative Measures ◽  
Per Capita ◽  
The Relationship

Abstract We report an intriguing empirical observation. The relationship between corruption and output depends on the economy's degree of openness: in open economies, corruption and GNP per capita are strongly negatively correlated, but closed economies display no relationship at all. This stylized fact is robust to a variety of different empirical specifications. In particular, the same basic pattern persists if we use alternative measures of openness, if we focus on different time periods, if we restrict the sample to include only highly corrupt countries, and if we restrict attention to specific geographic areas or to poor countries. We find that the degree of financial openness is primarily what determines whether corruption and output are correlated. Moreover, corruption is negatively related to capital accumulation in open economies, but not in closed economies. We present a model, consistent with these findings, in which the main channel through which corruption affects output is capital drain.

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