Working Paper #2018-001
The serendipity theorem for an endogenous open economy growth model
A Samuelsonian serendipity theorem for an endogenous growth model is
derived. The formula for optimal population growth rate deviates from
those of the model with exogenous population growth rates in a third
best endogenous growth model of the Lucas type with imperfect
international capital movements and human capital externalities.
Calibration shows that the effect of variation of the exogenous
population growth rates on other variables and the deviation of
population growth rates from its optimal value are small. The reason is
that labour supply, interest rates and technical change are endogenous.
There is not much of an incentive for population growth policy unless
Frisch parameters change with ageing.
- Keywords
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- Open economy
- endogenous growth
- human capital
- serendipity theorem
- ageing
- JEL codes
-
- F43
- J11
- 22
- 24
- O11
- 15
- 41
Cite this as
APA 7th ed.Ziesemer, T. (2018). The serendipity theorem for an endogenous open economy growth model (UNU-MERIT Working Paper No. 2018-001). UNU-MERIT. https://unu-merit.nl/publications/working-papers/abstract/?id=7451