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), pp. 103050.1-103050.18. [10.1016/j.jmacro.2018.08.003]

Dilution Effects, Population Growth and Economic Growth under Human Capital Accumulation and Endogenous Technological Change

A. Bucci;
2019-12

Abstract

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.
Human Capital; Economic Growth; Population Growth; Dilution Effects; Research & Development
Settore SECS-P/01 - Economia Politica
10-ago-2018
Article (author)
File in questo prodotto:
File Dimensione Formato  
Bucci-Eraydin-Mueller_2017.pdf

accesso aperto

Tipologia: Pre-print (manoscritto inviato all'editore)
Dimensione 236.87 kB
Formato Adobe PDF
236.87 kB Adobe PDF Visualizza/Apri
1-s2.0-S0164070417305785-main.pdf

accesso riservato

Tipologia: Publisher's version/PDF
Dimensione 1.59 MB
Formato Adobe PDF
1.59 MB Adobe PDF   Visualizza/Apri   Richiedi una copia
Published Version.pdf

accesso riservato

Descrizione: Online first
Tipologia: Publisher's version/PDF
Dimensione 1.35 MB
Formato Adobe PDF
1.35 MB Adobe PDF   Visualizza/Apri   Richiedi una copia
Pubblicazioni consigliate

Caricamento pubblicazioni consigliate

I documenti in IRIS sono protetti da copyright e tutti i diritti sono riservati, salvo diversa indicazione.

Utilizza questo identificativo per citare o creare un link a questo documento: http://hdl.handle.net/2434/597944
Citazioni
  • ???jsp.display-item.citation.pmc??? ND
  • Scopus 9
  • ???jsp.display-item.citation.isi??? 8
social impact