Endogenous fertility and human capital in a Schumpeterian growth model

Angus C. Chu, Guido Cozzi, Chih Hsing Liao

Research output: Contribution to journalArticlepeer-review

27 Scopus citations

Abstract

This study develops a scale-invariant Schumpeterian growth model with endogenous fertility and human capital accumulation. The model features two engines of long-run economic growth: R&D-based innovation and human capital accumulation. One novelty of this study is endogenous fertility, which negatively affects the growth rate of human capital. Given this growth-theoretic framework, we characterize the dynamics of the model and derive comparative statics of the equilibrium growth rates with respect to structural parameters. As for policy implications, we analyze how patent policy affects economic growth through technological progress, human capital accumulation, and endogenous fertility. In summary, we find that strengthening patent protection has (a) a positive effect on technological progress, (b) a negative effect on human capital accumulation through a higher rate of fertility, and (c) an ambiguous overall effect on economic growth.

Original languageEnglish
Pages (from-to)181-202
Number of pages22
JournalJournal of Population Economics
Volume26
Issue number1
DOIs
StatePublished - Jan 2013

Keywords

  • Economic growth
  • Endogenous fertility
  • Patent policy

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