We introduce demographic shocks in a multi-sector endogenous growth model, a-la Uzawa-Lucas. We show that an analytical solution of the stochastic problem can be found, under the restriction that the capital share equals both the inverse of the intertemporal elasticity of substitution and the degree of altruism. We show that uncertainty lowers the optimal levels of consumption and the physical capital stock, while they do not a ffect the share of human capital employed in production.
A note on demographic shocks in a multi-sector growth model / D. La Torre, S. Marsiglio. - In: ECONOMICS BULLETIN. - ISSN 1545-2921. - 32:3(2012), pp. 2293-2299.
A note on demographic shocks in a multi-sector growth model
D. La TorrePrimo
;S. MarsiglioUltimo
2012
Abstract
We introduce demographic shocks in a multi-sector endogenous growth model, a-la Uzawa-Lucas. We show that an analytical solution of the stochastic problem can be found, under the restriction that the capital share equals both the inverse of the intertemporal elasticity of substitution and the degree of altruism. We show that uncertainty lowers the optimal levels of consumption and the physical capital stock, while they do not a ffect the share of human capital employed in production.Pubblicazioni consigliate
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