The Serendipity Theorem Reconsidered: The Three-Generations Case Without Inheritance

Jaeger, Klaus

doi:10.1007/978-3-642-50043-5_6

Cited by 3 publications

(1 citation statement)

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“…3 The limitations of the Serendipity Theorem were also discussed by several studies. Jaeger (1989) introduced an additional generation dependent on its parents and showed that even if an interior solution of the optimal population growth rate exists, the Serendipity Theorem does not hold in general. Kuhle (2007) and Jaeger and Kuhle (2009) showed that the Serendipity Theorem does not hold if there are government bonds.…”

Section: Notesmentioning

confidence: 99%

Reexamination of the Serendipity Theorem from the stability viewpoint

2019

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This paper reexamines the Serendipity Theorem of Samuelson (1975) from the stability viewpoint, and shows that, for the Cobb–Douglas preference and CES technology, the most-golden golden-rule lifetime state being stable depends on parameter values. In some situations, the Serendipity Theorem fails to hold despite the fact that steady-state welfare is maximized at the population growth rate, since the steady state is unstable. Through numerical simulations, a more general case of CES preference and CES technology is also examined, and we discuss the realistic relevance of our results. We present the policy implication of our result, that is, in some cases, the steady state with the highest utility is unstable, and thus a policy that aims to achieve the social optima by manipulating the population growth rate may lead to worse outcomes.

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Section: Notesmentioning

confidence: 99%

Reexamination of the Serendipity Theorem from the stability viewpoint

2019

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The optimum growth rate for population reconsidered

Jaeger

Kuhle

2008

J Popul Econ

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Abstract. This article gives exact general conditions for the existence of an interior optimum growth rate for population in the neoclassical two-generations-overlapping model.In an economy where high (low) growth rates of population lead to a growth path which is efficient (inefficient) there always exists an interior optimum growth rate for population.In all other cases there exists no interior optimum. The Serendipity Theorem, however, does in general not hold in an economy with government debt. Moreover, the growth rate for population which leads an economy with debt to a golden rule allocation can never be optimal.

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Endogenous fertility and the Henry George Theorem

Schweizer

1996

Journal of Public Economics

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The Serendipity Theorem Reconsidered: The Three-Generations Case Without Inheritance

Cited by 3 publications

References 2 publications

Reexamination of the Serendipity Theorem from the stability viewpoint

Reexamination of the Serendipity Theorem from the stability viewpoint

The optimum growth rate for population reconsidered

Endogenous fertility and the Henry George Theorem

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