The long-run relationship between per capita incomes and population size

Maya Eden (University of Zurich) and Kevin Kuruc (Population Wellbeing Initiative, University of Texas at Austin)

GPI Working Paper No. 29-2024

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The relationship between the human population size and per capita incomes has long been debated. Two competing forces feature prominently in these discussions. On the one hand, a larger population means that limited natural resources must be shared among more people. On the other hand, more people means more innovation and faster technological progress, other things equal. We study a model that features both of these channels. A calibration suggests that, in the long run, (marginal) increases in population would likely lead to (marginal) increases in per capita incomes.

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