Effects of Exhaustible Resources and Declining Population on Economic Growth with Hotelling's Rule

This study introduces declining population and exhaustible resources into a semi-endogenous growth model that explicitly incorporates firms' optimization behavior and investigates the relationship between the population growth rate and the growth rate of the per capita output. The main results are as follows. First, irrespective of whether the population growth rate is positive or negative, the long-run growth rate of per capita output can be positive, depending on the conditions. Second, when the population growth rate is positive, the long-run growth rate of per capita output depends positively on the saving rate, although the model belongs to the class of semi-endogenous growth without scale effects