Publication details
The Solow-Swan growth model with bounded population
| Authors | |
|---|---|
| Year of publication | 2010 |
| Type | Article in Periodical |
| Magazine / Source | Aplimat- Journal of Applied Mathematics |
| MU Faculty or unit | |
| Citation | |
| Field | Economy |
| Keywords | Solow Swan model; population growth; stability |
| Description | In this paper we tried to show that constant rate of population growth in classic theories of economic growth can be replaced by general bounded growth. It is obvious that labor force cannot grow exponentially in infinite time horizon because of the environmental carrying capacity. We have shown that the long run capital/labor ratio is greater in the labor bounded case than in the standard model, we also compared the short run capital/labor ratio results. As in the standard economy model, the only way how to increase the economy level in the long run is to increase the level of technology. |