Population Ageing and Economic Growth

Education Policy and Family Policy in a Model of Endogenous Growth

  • Authors
  • Sandra Gruescu

Part of the Contributions to Economics book series (CE)

Table of contents

  1. Front Matter
    Pages I-XII
  2. Population in models of economic growth

  3. Models of economic growth with an ageing population

    1. Front Matter
      Pages 93-93
    2. Pages 177-188
    3. Pages 189-192
  4. Back Matter
    Pages 193-201

About this book

Introduction

We review standard economic growth models concentrating on the relationship between population ageing and economic growth and develop a growth model with endogenous human capital and endogenous fertility. With this model we analyse the effects of education policy and family policy on economic growth. The main result for economic policy is that education policy boosts human capital and thus economic growth only in the short-term (i.e. during the transition phase towards the steady state). To boost economic growth in the long-term (i.e. when the economy has reached its steady state), it is necessary to employ family policy as this increases both the fertility rate and the time individuals spend accumulating human capital. The main result for economic growth theory is that steady state economic growth is not possible when population is ageing.  Steady state growth is only possible if the age structure of the population is constant.

Keywords

Age Structure Ageing Fertility Growth Theory Human Capital Lucas New Growth Theory Population Ageing Silver Growth Solow economic growth growth growth model

Bibliographic information

  • DOI https://doi.org/10.1007/978-3-7908-1906-9
  • Copyright Information Physica-Verlag Heidelberg 2007
  • Publisher Name Physica-Verlag HD
  • eBook Packages Business and Economics
  • Print ISBN 978-3-7908-1905-2
  • Online ISBN 978-3-7908-1906-9
  • Series Print ISSN 1431-1933
  • About this book