Efficiency with Endogenous Population Growth

Efficiency with Endogenous Population Growth

In this paper, we generalize the notion of Pareto-efficiency to make it applicable to environments with endogenous populations. Two efficiency concepts are proposed, P-efficiency and A-efficiency. The two concepts differ in how they treat potential agents that are not born. We show that these concepts are closely related to the notion of Pareto-efficiency when fertility is exogenous. We then pr...

Efficiency with Endogenous Population Growth Technical Appendix∗

In this Appendix we provide additional details on some of the ideas developed in the paper, “Efficiency with Endogenous Population Growth,” (2006). We first give the formal proof that A-efficiency is generically non-empty. The second section extends the notions of efficient fertility developed in the paper for the discrete case to environments in which fertility is a continuous choice variable....

Population aging and endogenous economic growth

We investigate the consequences of population aging for long-run economic growth perspectives. Our framework incorporates endogenous growth models and semi-endogenous growth models as special cases. We show that (1) increases in longevity have a positive impact on per capita output growth, (2) decreases in fertility have a negative impact on per capita output growth, (3) the positive longevity ...

Efficiency with Endogenous Information Choice∗

We study the efficiency of information acquisition decisions in models with dispersed information and strategic considerations. Our main result is that information choice is typically inefficient because agents do not fully internalize the effects of their information on others. This ex-ante suboptimality is obtained even in environments where information is used efficiently ex-post. We demonst...

Endogenous Growth Theory, Status Quo Efficiency, and Globalization