On the dependence of population growth on income: New results in a ricardian - Malthus model

Summary

We have been able to complete an investigation of Niehans' well-known neoclassical growth model with endogenous population by analytical methods so that the full range of steady-state solutions and their properties are revealed. For certain ranges of the equilibrium capital-labor ratio, an increase in the saving rate decreases equilibrium growth rates and per capita income, and an increase in the “marginal propensity to proliferate” increases equilibrium growth rates and per capita income. Thus a complete analysis provides new results, some contrary to expectations, which provide a basis for comparing Niehans' model with other specifications of the population sector.