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| Hiroaki Sasaki |
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| ''The Solow growth model with a CES production function and declining population'' |
| ( 2019, Vol. 39 No.3 ) |
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| This study investigates the relationship between per capita output growth and population growth using the Solow growth model when population growth is negative. When the Cobb-Douglas production function is used, the per capita output growth rate can be positive even if the technological progress rate is zero. In contrast, when the CES production function is used, the per capita output growth rate is zero if the technological progress rate is zero and the elasticity of substitution between capital and labor is less than unity. |
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| Keywords: Solow growth model, negative population growth, CES production function |
JEL: O4 - Economic Growth and Aggregate Productivity: General
E2 - Macroeconomics: Consumption, Saving, Production, Employment, and Investment: General (includes Measurement and Data) |
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| Manuscript Received : May 03 2019 | | Manuscript Accepted : Sep 03 2019 |
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