Fertility and Mortality in a Neoclassical Growth Model

46 Pages Posted: 7 Feb 2011

See all articles by Jochen O. Mierau

Jochen O. Mierau

University of Groningen; Netspar

Stephen J. Turnovsky

University of Washington - Institute for Economic Research; CESifo (Center for Economic Studies and Ifo Institute)

Date Written: January 1, 2011

Abstract

We develop and study a neoclassical growth model with a realistic demographic structure. Our model complements recent developments in the overlapping generations (OLG) literature by highlighting the natural link that exists between different classes of macrodynamic models. Within the model we show that there exists an overlooked equilibrium in which demographic factors play a minor role. In numerical simulations we show that the economic impact of a change in the population growth rate differs dramatically depending on whether the change was induced by a change in the birth rate, the mortality rate or a combination of the two. Finally, we show that the demographic transition experienced by the US over the last half century cannot explain the substantial aggregate economic changes that have occurred during this period.

Keywords: demography, growth, overlapping generations

JEL Classification: C62, D91, E13, J10

Suggested Citation

Mierau, Jochen O. and Turnovsky, Stephen J., Fertility and Mortality in a Neoclassical Growth Model (January 1, 2011). Netspar Discussion Paper No. 01/2011-004, Available at SSRN: https://ssrn.com/abstract=1754954 or http://dx.doi.org/10.2139/ssrn.1754954

Jochen O. Mierau (Contact Author)

University of Groningen ( email )

P.O. Box 800
9700 AV Groningen
Netherlands

HOME PAGE: http://www.rug.nl/staff/j.o.mierau

Netspar

P.O. Box 90153
Tilburg, 5000 LE
Netherlands

Stephen J. Turnovsky

University of Washington - Institute for Economic Research ( email )

Seattle, WA 98195
United States
206-685-8028 (Phone)
206-543-5955 (Fax)

CESifo (Center for Economic Studies and Ifo Institute)

Poschinger Str. 5
Munich, DE-81679
Germany

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