Economic Theory of Optimal Population

OPTIMUM POPULATION
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Does it matter?

Theories Of Population

To answer this question, the paper proceeds in two main parts. In the first part, taking a citizen's utility as a measure of welfare, we identify the channels through which a larger population size reduces welfare, on the one hand, and increases welfare on the other hand.

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The optimum population size is achieved when the net resultant effect of all these channels leaves citizens' welfare at the maximum. When current and projected total fertility rates without net immigration lead to a projected path of actual population size that glides below the path of optimum population size, the policy question is how best to boost population increase to reach the optimum. The second part of the paper analyzes the costs to Singapore society of reaching the optimum by measures to boost total fertility rate, on the one hand, and allowing net immigration flows on the other hand.

Optimum population

A starting point of economic analysis uses neoclassical growth theory to demonstrate how an increase in population size reduces per capita consumption and hence utility via a "capital dilution" channel. With a limited land size, an increase in population size raises population density, which lowers welfare through a "congestion" channel.

The paper, however, identifies four other channels through which a larger population size increases welfare. These are a "tax base" channel, a "Mozart effect" channel, a "human capital externalities" channel, and an "Okun's Law" channel. International Finance and Macroeconomics.

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From Massalia, the available Greeks not made dozens in suitable Spain devastating as Emporiae and Rhoda. Rather it is concerned with the relation between the size of population and production wealth. Beddington, J. General Theory of Population, trans. This is shown in the figure where the AP 1 curve represents the higher average product of labour and point L 1 shows the maximum per capita income at the new optimum level of population OP 1. With a limited land size, an increase in population size raises population density, which lowers welfare through a "congestion" channel. A , and expressing 4 in terms of and as.

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Topic 4: Optimal Taxation Part 1 - Economics 2450A: Public Economics

Description We are used to calling most developing countries overpopulated and consi- dering some industrialized countries like West Germany "threatened by underpopulation". Analogous population policies with different objecti- ves are discussed.

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However, none of the measures suggested can be justi- fied or evaluated without an implicit concept of optimum population, a notion which has attracted attention ever since economics was made a science. The relevance of the subject and the recent rise in interest by popula- tion economists has motivated the organization of a conference on "Opti- mal Population" in Bielefeld, where most of this book originates.

Nerlove, A. Razin, and E.