Wealth creation, wealth dilution and demography

Demographic forces are crucial drivers of macroeconomic performance. Yet, existing theories do not allow demography to respond fundamentals and policies while determining key variables. We build a model endogenous interactions between fertility innovation-led productivity growth that delivers empirically consistent co-movements population, income wealth. Wealth dilution wage dynamics stabilize population through non-Malthusian forces; determines the ratios labor consumption financial Shocks reduce size, like immigration barriers, permanently share mass firms, creating prolonged stagnation substantial intergenerational redistribution welfare.