The Time Path of the Economy as the Population Moves Towards a Stationary State

This paper is intended as a contribution to the understanding of how population and the economy influence each other in a long-run dynamic setting. We report some simulation results based on a model in which households are assumed to make optimum (from their point of view) allocations of lifetime wealth among commodity consumption, leisure,1 and the bearing and raising of children. The choices are made in a life cycle framework and reflect the …