This paper answers the following two questions: 1) In the data, do we find a dilution effect of population growth also on per-capita human capital investment? If yes, 2) How can we use this observation to explain theoretically the existence of a differential impact of population change on economic growth across countries? In the first part of the article we document empirically considerable cross-country heterogeneity of a dilution effect of population growth with regards to the process of per-capita human capital formation. And we observe that, depending on the dilution effect observed in a given country, population growth may be relevant — either positively or negatively — for economic growth. In the second part of the paper we use these results to build a multi-sector growth model which, by allowing for a country specific dilution effect of population growth on per-capita human capital formation, is capable of accounting for the non-monotonous correlation between demographic and economic growth rates in the long-run.
Dilution Effects, Population Growth and Economic Growth under Human Capital Accumulation and Endogenous Technological Change / A. Bucci, L. Eraydin, M. Müller. - In: JOURNAL OF MACROECONOMICS. - ISSN 0164-0704. - 62(2019 Dec). [Epub ahead of print]
|Titolo:||Dilution Effects, Population Growth and Economic Growth under Human Capital Accumulation and Endogenous Technological Change|
|Parole Chiave:||Human Capital; Economic Growth; Population Growth; Dilution Effects; Research & Development|
|Settore Scientifico Disciplinare:||Settore SECS-P/01 - Economia Politica|
|Data di pubblicazione:||dic-2019|
|Digital Object Identifier (DOI):||http://dx.doi.org/10.1016/j.jmacro.2018.08.003|
|Appare nelle tipologie:||01 - Articolo su periodico|