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Simone Marsiglio and Davide La Torre
''A note on demographic shocks in a multi-sector growth model''
( 2012, Vol. 32 No.3 )
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 a ffect the share of human capital employed in production.
Keywords: Demographic shocks, Economic growth, Closed-form Solution
JEL: O4 - Economic Growth and Aggregate Productivity: General
J1 - Demographic Economics: General
Manuscript Received : Nov 07 2011 Manuscript Accepted : Aug 21 2012

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