An horizontal innovation growth model with endogenous time allocation and non-stable demography

Guerra, Manuel; Pereira, João; St. Aubyn, Miguel

http://hdl.handle.net/10400.5/16419

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Authors

Guerra, Manuel

Pereira, João

St. Aubyn, Miguel

Abstract(s)

We propose a decentralized endogenous growth model in order to study the transitional dynamics associated with the process of population aging in a small open economy. The model features endogenous time allocation and two growth engines: R&D and human capital accumulation. Per capita output growth is affected negatively by the difference in the rates of growth of labor force and of the total population in the period where the weight of the labor force decreases to a new and lower level. The biggest impact of aging on per capita output growth is during the period where labor force grows at a lower rate than the population unless it is compensated by some other effect. Under some assumptions, a decrease in the corporate tax improves growth.

Keywords

Endogenous Growth Demographic Changes Time Allocation Human Capital R&D

URI

http://hdl.handle.net/10400.5/16419

Citation

Guerra, Manuel, João Pereira e Miguel St. Aubyn (2018). "An horizontal innovation growth model with endogenous time allocation and non-stable demography". Instituto Superior de Economia e Gestão – REM Working paper nº 060 - 2018