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More on nonconvexities in an optimal growth model. (English) Zbl 1151.91634

Summary: In an endogenous growth model with marginal product of capital minus population growth rate monotonically decreasing in capital, we show that the economy has a unique balanced growth path (BGP) equilibrium which is saddle-point stable. Moreover, along a BGP path, when all exogenous factors are controlled for, there exists a negative relation between fertility growth and economic growth as well as between fertility and environmental quality.

MSC:

91B62 Economic growth models
49N90 Applications of optimal control and differential games
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