The International Economy
Online ISSN : 1884-4367
Print ISSN : 2186-6074
ISSN-L : 1884-4367
Special Issue in Memory of Michihiro Ohyama and Makoto Ikema
Rates of Population Decline in Solow and Semi-Endogenous Growth Models: Empirical Relevance and the Role of Child Rearing Cost
Ichiroh Daitoh
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2020 Volume 23 Pages 218-234


It has been found that population decline may change the properties of growth paths from those in a population-increasing economy in the Solow and semi-endogenous growth models. However, the rates of population decline for such dynamics seem too large given the available empirical data. We show that positive capital-input externalities can reduce such rates of population decline to empirically relevant levels in a semi-endogenous growth model, while the introduction of child rearing costs could play a similar role in the Solow model. The economic implications of child rearing costs are discussed for the Solow growth model with population decline.

JEL Classification: J11; O11; O47

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© 2020 The Japan Society of International Economics
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