Title: Population, immigration and growth in a Romer endogenous growth model

Authors: Pedro J. Gutiérrez-Diez

Addresses: Dpto. de Fundamentos del Análisis Económico e Historia e Instituciones Económicas, Facultad de CC.EE. y EE., Universidad de Valladolid, Avda. Valle Esgueva, 6, 47011 Valladolid, Spain

Abstract: Endogenous growth theory has not yet consistently incorporated population growth or immigration into its models. As a result, in the present day, there is no universally accepted endogenous growth model explaining the empirical observed relationships between growth, population and immigration. The present paper overcomes this inconvenience by designing a fully specified Romer endogenous growth model, completely micro-founded, that incorporates the existence of population growth and immigration and that allows the stylised facts of growth as well as the relationships between growth, population and immigration to be explained. In addition, the proposed model is susceptible to calibration and simulation, and, when applied to the US economy, provides a good fit to the data.

Keywords: stochastic general equilibrium model; endogenous growth; Romer's (1986) model; population; immigration; immigrant-native complementarity.

DOI: 10.1504/GBER.2018.094433

Global Business and Economics Review, 2018 Vol.20 No.5/6, pp.679 - 708

Received: 27 May 2016
Accepted: 27 Apr 2017
Published online: 03 Sep 2018 *

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