Growth on a Finite Planet: Resources, Technology, and Population in the Long Run
54 Pages Posted: 8 Jun 2013
Date Written: April 17, 2013
We study the interactions between technological change, resource scarcity and population dynamics in a Schumpeterian model with endogenous fertility. We fi nd a pseudo-Malthusian equilibrium in which population is constant and determined by resource scarcity while income grows exponentially. If labor and resources are substitutes in production, income and fertility dynamics are self-balancing and the pseudo-Malthusian equilibrium is the global attractor of the system. If labor and resources are complements, income and fertility dynamics are self-reinforcing and drive the economy towards either demographic explosion or collapse. Introducing a minimum resource requirement per capita, we obtain constant population even under complementarity.
Keywords: Endogenous Innovation, Resource Scarcity, Population Growth, Fertility Choices
JEL Classification: E10, L16, O31, O40
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