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Population size is dynamic, increasing with birth rates and immigration, and decreasing with death rates and emigration. In ideal conditions with unlimited resources, populations can increase exponentially, which plots as a J-shaped growth rate curve of population size against time. This type of curve is characteristic of newly-introduced invasive species, or populations that have suffered catastrophic declines and are rebounding.However, realistic environmental conditions limit the number of...
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Optimal population size and endogenous growth.

T Palivos, C K Yip

    Economics Letters
    |January 1, 1993
    PubMed
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    The Benthamite welfare criterion, maximizing total utility, results in smaller populations and higher economic growth compared to the Millian criterion, which maximizes average utility. This challenges previous economic conjectures on population size and living standards.

    Keywords:
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    Area of Science:

    • Economics
    • Economic Growth Theory
    • Welfare Economics

    Background:

    • Comparing economic allocations across different population sizes necessitates objective functions.
    • Benthamite (classical utilitarianism) and Millian (average utilitarianism) welfare functions are commonly used.
    • Edgeworth conjectured the Benthamite principle leads to larger populations and lower living standards.

    Purpose of the Study:

    • To investigate Edgeworth's conjecture within an endogenous growth model.
    • To analyze the interplay between output and population growth rates.
    • To compare the implications of Benthamite versus Millian welfare criteria on population and growth.

    Main Methods:

    • Utilizing an endogenous growth framework.
    • Modeling interactions between output and population growth rates.
    • Analyzing optimal conditions under different welfare criteria.

    Main Results:

    • The Benthamite criterion leads to smaller population sizes.
    • The Benthamite criterion results in higher output growth rates.
    • These findings contrast with Edgeworth's original conjecture.

    Conclusions:

    • Under optimal conditions, the Benthamite approach promotes population reduction and enhanced economic growth.
    • The study provides new insights into welfare economics and population dynamics.
    • Endogenous growth models offer a framework for re-evaluating classical economic conjectures.