The purpose of this article is to identify the role of population size, population growth and population ageing in models of endogenous economic growth. While in exogenous growthmodels demographic variables are linked to economic prosperity mainly via the populationsize, the structure of the workforce, and the capital intensity of workers, endogenous growthmodels and their successors also allow for interrelationships between demography andtechnological change. However, most of the existing literature considers only theinterrelationships based on population size and its growth rate and does not explicitly accountfor population ageing. The aim of this paper is (a) to review the role of population size and population growth in the most commonly used economic growth models (with a focus onendogenous economic growth models), (b) discuss models that also allow for populationageing, and (c) sketch out the policy implications of the most commonly used endogenousgrowth models and compare them to each other.JEL classification: J10, O16, O41
Demographic change, endogenous R&D, economic growth
Klaus Prettner, Vienna Institute of Demography, Austrian Academy of Sciences, and Instituteof Mathematical Methods in Economics, Vienna University of Technology; email:firstname.lastname@example.orgAlexia Prskawetz, Institute of Mathematical Methods in Economics (research group oneconomics), Vienna University of Technology, and Vienna Institute of Demography, AustrianAcademy of Sciences; email:email@example.com
We would like to thank Holger Strulik (University of Hannover) and three anonymousreferees for valuable comments and suggestions. The paper was prepared within the research project ”Agglomeration processes in ageing societies” funded by the Vienna Science andTechnology Fund (WWTF) in its “Mathematics and...” Call 2007.