Working Paper #2009-016
Stochastic environmental effects, demographic variation, and economic growth
We consider a stochastic environment to study interactions among
pollution growth, demographic changes, and economic growth. Drawing on
the empirical findings of slow convergence patterns of pollution shocks
(viz., with a long-memory), we build an analytical framework where
stochastic environmental feedback effects on population changes are
reflected upon aggregate economic growth. Long-memory in economic
growth, in our model, is shown to arise due to the inherent
stochasticity in environmental and demographic system. Empirical results
for a set of developed and developing countries generally support our
conjecture. Simulation experiment is carried out to lend additional
support to this claim.
- Keywords
-
- Environmental quality
- long-memory
- demographic dynamics
- economic growth UNU-MERIT Working Papers ISSN 1871-9872
- JEL codes
-
- C13
- J11
- O47
Cite this as
APA 7th ed.Azomahou, T. T., & Mishra, T. (2009). Stochastic environmental effects, demographic variation, and economic growth (UNU-MERIT Working Paper No. 2009-016). UNU-MERIT. https://unu-merit.nl/publications/working-papers/abstract/?id=3693