Semi-Endogenous R&D Growth Model with Negative Population Growth

Abstract

This paper investigates the rates of technological progress, total output growth, and per capita output growth when population growth is negative by using a semi-endogenous R&D growth model. The analysis shows that within finite time, the employment share of the final goods sector reaches unity, the employment share of the R&D sector reaches zero, and accordingly, the rate of technological progress leads to zero. In this case, the growth rate of per capita output asymptotically approaches a positive value