Endogenous Growth of Population and Income Depending on Resource and Knowledge

Authors: Prskawetz A.¹; Feichtinger G.²; Luptacik M.²; Milik A.²; Wirl F.³; Hof F.⁴; Lutz W.

Source: European Journal of Population/ Revue europenne de Dmographie, Volume 14, Number 4, 1998 , pp. 305-331(27)

Publisher: Springer

Abstract:

We consider a three sector demoeconomic model and its interdependence with the accumulation of human capital and resources. The primary sector harvests a renewable resource which constitutes the input into industrial production, the secondary sector of our economy. Both sectors are always affected by the stock of knowledge. The tertiary sector is responsible for the accumulation of this stock that represents a public good for all three sectors. Labour is divided up between the three sectors under the assumption of competitive labour markets. The economy exhibits two externalities – free access to renewable resource harvesting and the existence of a public stock of knowledge – that are not properly reflected in competitive markets. We internalize these externalities by taxing the output of the primary sector and use these taxes together with taxes on labour income to finance the inputs of the tertiary sector. The central focus of this study is whether and what kind of interactions between the economy, the population and the environment foster sustainability and if possible, continuous growth.

Keywords: algebraic differential equations; endogenous growth; local bifurcation; population; resource; technology

Language: English

Document Type: Regular paper

Affiliations: 1: Max Planck Institute for Demographic Research, Doberaner Str. 114, 18057 Rostock, Germany (author for correspondence: Fax: +49 (0)381 2081 269; Tel: +49 (0)381 2081 141; e-mail: Fuernkranz@demogr.mpg.de) 2: Institute for Econometrics, Operations Research and Systems Theory, Vienna University of Technology, Argentinierstr. 8, 1040 Wien, Austria 3: Faculty of Economics, University of Magdeburg, Postfach 4120, 39106 Magdeburg, Germany 4: Institute for Economics, Vienna University of Technology, Argentinierstr. 8, 1040 Wien, Austria

Publication date: 1998-01-01

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• In this Subject: Economics
• By this author: Prskawetz A. ;  Feichtinger G. ;  Luptacik M. ;  Milik A. ;  Wirl F. ;  Hof F. ;  Lutz W.

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