Template-type: ReDIF-Paper 1.0
Author-Name: Ziesemer, Thomas
Author-Email: ziesemer@merit.unu.edu
Author-Workplace-Name: UNU-MERIT
Title: Can we have growth when population is stagnant? Testing linear growth
	 rate formulas and their cross-unit cointegration of non-scale
	 endogenous growth models
Abstract: We sub-divide scale-invariant fully or semi-endogenous growth models 
	 into six sub-categories for formulas relating steady-state growth rates 
	 of income per capita and the growth rate of the population depending on 
	 the properties of slopes and intercepts. We capture their steady-state 
	 relation by a long-term relation in panel vector-error-correction models 
	 for 16 countries, and estimate the 16 models simultaneously allowing 
	 successively for more heterogeneity. The slope and intercepts of the 
	 growth equations are positive in this setting under slope homogeneity 
	 but less significant or even negative when allowing for heterogeneity. 
	 Slopes are mostly non-positive. Intercepts are positive for a large 
	 majority of countries. Results therefore favour fully over 
	 semi-endogenous growth with and without slope homogeneity and allow for 
	 growth rate policies. The more frequent case is that long-run growth can 
	 remain positive if population stops growing. Analysis of cross-unit 
	 cointegration suggests that long-run results are internationally 
	 connected.
Classification-JEL: C33, O47
Keywords: Endogenous growth, population growth, panel times series estimation
Series: UNU-MERIT Working Papers
Creation-Date: 20190611
Number: 2019-021
File-URL: https://unu-merit.nl/publications/wppdf/2019/wp2019-021.pdf
File-Format: application/pdf
File-Size: 275 Kb
Handle: RePEc:unm:unumer:2019021