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Demographic change in models of endogenous economic growth. A survey

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Abstract

While in exogenous growth models demographic variables are linked to economic prosperity mainly via the population size, the structure of the workforce, and the capital intensity of workers, endogenous growth models and their successors also allow for interrelationships between demographic variables and technological change. However, most of the existing literature considers only the interrelationships based on population size and its growth rate and does not explicitly account for population aging. The aim of this paper is (a) to review the role of population size and population growth in the most commonly used endogenous economic growth models, (b) discuss models that also allow for population aging, and (c) sketch out the policy implications of the most commonly used endogenous growth models and compare them to each other.

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Authors and Affiliations

  1. Vienna Institute of Demography, Austrian Academy of Sciences, Wohllebengasse 12-14, 1040, Vienna, Austria

    Klaus Prettner & Alexia Prskawetz

  2. Institute of Mathematical Methods in Economics, Vienna University of Technology, Argentinierstrasse 8/4/105-3, 1040, Vienna, Austria

    Klaus Prettner & Alexia Prskawetz

Authors
  1. Klaus Prettner
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  2. Alexia Prskawetz
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Correspondence to Alexia Prskawetz.

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Prettner, K., Prskawetz, A. Demographic change in models of endogenous economic growth. A survey. Cent Eur J Oper Res 18, 593–608 (2010). https://doi.org/10.1007/s10100-010-0179-y

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  • DOI: https://doi.org/10.1007/s10100-010-0179-y

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