Abstract:
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.
