Theory of population and economic growth c.1

What is the long-run effect of population size and growth in the more-developed world? Conventional economic growth theory implies a negative effect upon the standard of living. But this is contrary to the evidence. Julian L. Simon resolves the contradiction by enriching neoclassical growth theory with the technical change and productivity increase that occur in response to population size and growth.

The author reviews the theory from Petty and Malthus to Kaldor, Arrow, and Phelps, and builds upon that base. He provides a formal supply-demand framework for analysing the quantity of technology produced under different demographic conditions, and surveys the relevant empirical evidence. He analyses a learning-by-doing model which shows that more people imply a higher standard of living. And he develops the basic growth-theoretic model which, with realistic parameters, concludes that faster population growth implies higher income within the next century or two.