A System Dynamics Approach to Economic Growth Model from a Demographic Perspective: An Economic Demography Model Proposal

Abstract

The early concerns about exponential growth of population gave way to population aging towards the end of demographic transition period. Many European countries have gone through the demographic transition and the change in their age structure is accompanied by the evolving economic burdens in terms of high health care expenses and pension payments. The same transition is about to start in developing countries. Either it is at the beginning or at completion of the transition, each country should adopt its public policies due to the changing demographic and economic conditions. In that sense, governmental agencies need professional decision support tools to explore the dynamics of the economy and demography of a country and evaluate possible policy alternatives accordingly. In this study, we develop an economic demography model to aid the policy makers to delve into the fertility, education, human capital and technology dynamics of a population.