Econometrica: Nov 1971, Volume 39, Issue 6

Optimal Savings Policy When Labor Grows Endogenously

https://doi.org/0012-9682(197111)39:6<877:OSPWLG>2.0.CO;2-7
p. 877-897

Eric G. Davis, Ryuzo Sato

This paper is an attempt to study optimal savings policy in a world where the growth rate of labor responds to economic factors. This modification makes the form of society's social welfare function important--its elasticity affects "real" economic variables. In addition, a rule for direct population control is investigated.

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