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Savings, Demographic Change, and Economic Development

Authors: Kelley, Allen C;

Savings, Demographic Change, and Economic Development

Abstract

Possibly the most widely investigated adverse impact of population on economic growth is based on the hypothesized negative effect of population on the availability of savings for capital formation. Even though diminishing returns to land and natural resources due to increased population size has also constituted a long-run concern of economists, the magnitude of this impact has historically been attenuated largely by improving or augmenting the stock of land through capital formation. If population growth exerts a quantitatively significant detrimental effect on the rate of capital formation, then the diminishing-returns argument will hold with greater force. Similarly, economic development may be explained in part by increases in labor productivity which are due to technical progress; again, if embodied technical change plays a role, then the rate of capital formation-and population's relation to it-may be critical. The present paper examines several connections between population growth and the supply of savings for investment. Attention is centered on the relationship between family size and the rate of household saving.

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Powered by OpenAIRE graph
Found an issue? Give us feedback
selected citations
These citations are derived from selected sources.
This is an alternative to the "Influence" indicator, which also reflects the overall/total impact of an article in the research community at large, based on the underlying citation network (diachronically).
BIP!Citations provided by BIP!
popularity
This indicator reflects the "current" impact/attention (the "hype") of an article in the research community at large, based on the underlying citation network.
BIP!Popularity provided by BIP!
influence
This indicator reflects the overall/total impact of an article in the research community at large, based on the underlying citation network (diachronically).
BIP!Influence provided by BIP!
impulse
This indicator reflects the initial momentum of an article directly after its publication, based on the underlying citation network.
BIP!Impulse provided by BIP!
9
Average
Top 10%
Average
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