A note on demographic shocks in a multi-sector growth model

Marsiglio, Simone, and La Torre, Davide (2012) A note on demographic shocks in a multi-sector growth model. Economics Bulletin, 32 (3). pp. 2293-2299.

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Abstract

We introduce demographic shocks in a multi-sector endogenous growth model, a-la Uzawa-Lucas. We show that an analytical solution of the stochastic problem can be found, under the restriction that the capital share equals both the inverse of the intertemporal elasticity of substitution and the degree of altruism. We show that uncertainty lowers the optimal levels of consumption and the physical capital stock, while they do not affect the share of human capital employed in production.

Item ID: 24841
Item Type: Article (Research - C1)
ISSN: 1545-2921
Keywords: demographic shocks; economic growth; closed-form solution
Date Deposited: 06 Feb 2013 23:02
FoR Codes: 14 ECONOMICS > 1401 Economic Theory > 140102 Macroeconomic Theory @ 40%
14 ECONOMICS > 1402 Applied Economics > 140202 Economic Development and Growth @ 40%
14 ECONOMICS > 1401 Economic Theory > 140103 Mathematical Economics @ 20%
SEO Codes: 91 ECONOMIC FRAMEWORK > 9101 Macroeconomics > 910103 Economic Growth @ 70%
91 ECONOMIC FRAMEWORK > 9101 Macroeconomics > 910102 Demography @ 30%
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