Renström, T.I. and Spataro, L. (2011) 'The optimum growth rate for population under critical-level utilitarianism.', Journal of population economics., 24 (3). pp. 1181-1201.
We characterize optimal consumption, capital, and population growth of a production economy under critical-level utilitarianism. First, we show that neither classical utilitarianism nor average utilitarianism can avoid a corner solution for the population growth rate, in that under the former, population grows at the maximum speed (the so-called repugnant conclusion) while under the latter, it grows at the minimum. Second, we show that critical level utilitarianism yields an interior solution for the population growth rate provided the critical level belongs to a positive, open interval. Finally, we characterize the transition to the steady state and perform comparative dynamics analysis.
|Keywords:||Critical-level utilitarianism, Economic growth, Population.|
|Full text:||PDF - Accepted Version (648Kb)|
|Publisher Web site:||http://dx.doi.org/10.1007/s00148-010-0348-2|
|Publisher statement:||The original publication is available at www.springerlink.com|
|Record Created:||15 Jul 2011 14:20|
|Last Modified:||19 Jul 2011 13:01|
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