Demographic Change in Models of Endogenous Economic Growth. A Survey.

The purpose of this article is to identify the role of population size, population growth andpopulation ageing in models of endogenous economic growth. While in exogenous growthmodels demographic variables are linked to economic prosperity mainly via the populationsize, the structure of the workforce, and the capital intensity of workers, endogenous growthmodels and their successors also allow for interrelationships between demography andtechnological change. However, most of the existing literature considers only theinterrelationships based on population size and its growth rate and does not explicitly accountfor population ageing. The aim of this paper is (a) to review the role of population size andpopulation growth in the most commonly used economic growth models (with a focus onendogenous economic growth models), (b) discuss models that also allow for populationageing, and (c) sketch out the policy implications of the most commonly used endogenousgrowth models and compare them to each other.JEL classification: J10, O16, O4