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Population Growth And Preference Change In A Generalized Solow Growth Model With Gender Time Distributions

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  • Wei-Bin Zhang

    (Ritsumeikan Asia Pacific University, Japan)

Abstract
The study builds a model of dynamic interactions between the birth rate, the mortality rate, the population, wealth accumulation, time distribution between work, leisure and children caring, habit formation and preference change. The production technology and markets are built on the Solow growth model. We base our modeling the population dynamics on the Haavelmo population model and the Barro-Becker fertility choice model. This study takes account of habit formation and preference change. Although it is influenced by the Ramsey growth theory with time preference and habit formation, it uses Zhang’s approach to the household with habit formation and preference change. We synthesize different dynamic forces in a compact framework, using the utility function proposed by Zhang. Analytically, we focus on transitional processes as well as economic equilibrium. As the economic system is given by autonomous nonlinear differential equations, it is not easy to analyze its behavior. We simulate the model to demonstrate the existence of an equilibrium point and plot the motion of the dynamic system. We examine the effects of changes in weights given to the habit stock of children, the wife’s wage rate having negative impact on the propensity to have children, the wife weighing less the habit stock of leisure time, the wife’s habit stock of leisure time having negative impact on the husband’s propensity to use leisure time, the wife’s wage rate having negative impact on the husband’s propensity to use leisure time, woman’s human capital being improved, a rise in the total factor productivity, and the mother spending more time on each child fostering.

Suggested Citation

  • Wei-Bin Zhang, 2016. "Population Growth And Preference Change In A Generalized Solow Growth Model With Gender Time Distributions," Oradea Journal of Business and Economics, University of Oradea, Faculty of Economics, vol. 1(2), pages 7-30, September.
    • Handle: RePEc:ora:jrojbe:v:1:y:2016:i:2:p:7-30
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    More about this item

    Keywords

    habit stock; preference change; gender discrimination; propensity to have children; birth and mortality rate; population growth; gender difference in time distribution; wealth accumulation;
    All these keywords.

    JEL classification:

    • J11 - Labor and Demographic Economics - - Demographic Economics - - - Demographic Trends, Macroeconomic Effects, and Forecasts
    • J12 - Labor and Demographic Economics - - Demographic Economics - - - Marriage; Marital Dissolution; Family Structure
    • J13 - Labor and Demographic Economics - - Demographic Economics - - - Fertility; Family Planning; Child Care; Children; Youth
    • N3 - Economic History - - Labor and Consumers, Demography, Education, Health, Welfare, Income, Wealth, Religion, and Philanthropy

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