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 Torre
Primo
;
S. Marsiglio
Ultimo
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.
Demographic shocks ; Economic growth ; Closed-form solution
Settore SECS-S/06 - Metodi mat. dell'economia e Scienze Attuariali e Finanziarie
Settore SECS-P/01 - Economia Politica
http://www.accessecon.com/Pubs/EB/2012/Volume32/EB-12-V32-I3-P221.pdf
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Utilizza questo identificativo per citare o creare un link a questo documento: https://hdl.handle.net/2434/204587
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