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  1. 1

    Further implications of learning by doing: the effect of population on per-capita income

    Cigno A

    Bulletin of Economic Research. 1984 Nov; 36(2):97-108.

    This paper investigates the theoretical implications of the hypothesis that technical progress is affected by population size or growth. It extends the model of Arrow, in which technical progress is viewed as the result of learning-by-doing, in 3 ways: 1) a smooth substitutability between labor, capital, and natural resources is permitted; 2) the concept of learning-by-doing is broadened to allow for the fact that any act of production may involve some degree of learning; and 3) it addresses the stability question, left unanswered by Arrow. Models both without natural resources and with exhaustible natural resources were considered. In both versions of the model, the steady-state characteristics of the economy are independent of the initial population size. This suggests that the population-size or population-density effect advocated by Simon cannot be justified by a learning-by-doing mechanism and the initial advantage of large population size becomes insignificant over time. However, a positive population growth effect on the level or the growth rate of real per capita income is possible. In cases where natural resources are less important than man-made capital, a rise in the population growth rate would increase the growth rate of per capita income but decrease its level, whereas the opposite situation applies in cases where natural resources are more important than capital.
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  2. 2

    Consumption vs. procreation in economic growth

    Cigno A

    In: Economic consequences of population change in industrialized countries: proceedings of the Conference on Population Economics held at the University of Paderborn, West Germany, June 1-June 3, 1983, edited by Gunter Steinmann. New York, N.Y./Berlin, Germany, Federal Republic of, Springer-Verlag, 1984. 2-28. (Studies in Contemporary Economics Vol. 8)

    The author attempts to construct a model that would justify a positive relationship between the level or growth rate of population on the one hand and the levels or growth rates of real per capita income and consumption on the other. The implications of a positive feedback from per capita income to population growth are examined using a neoclassical growth model with substitutable factors of production. The analysis is then extended by introducing endogenous population change. The geographic focus is on developed countries. (ANNOTATION)
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