Technological Change and Population Growth

Abstract

In the Malthusian and Ricardian tradition, economic development is viewed as a race between population and technical improvements. Technological change is envisaged as an outward shift of the production possibility frontier which opens new space to be filled with a growing population. Upon technical improvements, population size increases until the enlarged consumption possibilities are exhausted and consumption per head has come down to a stationary subsistence level again. Hence, according to this view, technical improvements elicit accelerated population growth. It will be shown in this paper that, from a neoclassical point of view, technical progress under quite reasonable assumptions lowers population growth.

I am indebted for constructive comments of a referee. Responsibility for any errors remains with the author.