NATIONAL BUREAU OF ECONOMIC RESEARCH
NATIONAL BUREAU OF ECONOMIC RESEARCH

Efficiency with Endogenous Population Growth

Mikhail Golosov, Larry E. Jones, Michele Tertilt

NBER Working Paper No. 10231
Issued in January 2004
NBER Program(s):   EFG

In this paper, we generalize the notion of Pareto-efficiency to make it applicable to environments with endogenous populations. Two efficiency concepts are proposed, P-efficiency and A-efficiency. The two concepts differ in how they treat people who are not born. We show how these concepts relate to the notion of Pareto-efficiency when fertility is exogenous. We then prove versions of the first welfare theorem assuming that decision making is efficient within the dynasty. Finally, we give two sets of sufficient conditions for non-cooperative equilibria of family decision problems to be efficient. These include the Barro and Becker model as a special case.

download in pdf format
   (458 K)

email paper

This paper is available as PDF (458 K) or via email.

This paper was revised on April 20, 2006

Machine-readable bibliographic record - MARC, RIS, BibTeX

Document Object Identifier (DOI): 10.3386/w10231

Published: Mikhail Golosov & Larry E. Jones & Michèle Tertilt, 2007. "Efficiency with Endogenous Population Growth," Econometrica, Econometric Society, vol. 75(4), pages 1039-1071, 07.

Users who downloaded this paper also downloaded these:
Jones w6285 Population and Ideas: A Theory of Endogenous Growth
Ehrlich and Kim w11590 Endogenous Fertility, Mortality and Economic Growth: Can a Malthusian Framework Account for the Conflicting Historical Trends in Population?
Bloom, Canning, and Sevilla w8685 Economic Growth and the Demographic Transition
Jones, Schoonbroodt, and Tertilt Fertility Theories: Can They Explain the Negative Fertility-Income Relationship?
Jones, Schoonbroodt, and Tertilt w14266 Fertility Theories: Can They Explain the Negative Fertility-Income Relationship?
 
Publications
Activities
Meetings
Data
People
About

Support
National Bureau of Economic Research, 1050 Massachusetts Ave., Cambridge, MA 02138; 617-868-3900; email: info@nber.org

Contact Us