The Uzawa-Lucas Model in Discrete Time with General Population Growth Rate

Abstract

This paper reformulates the classical Uzawa-Lucas model of economic growth and human capital accumulation by representing time as a discrete variable and using a non-constant population growth rate. In addition, the model is developed with a more general utility function. The study examines the optimal trajectories in human and physical capital and consumption showing the existence of a unique steady state which stability is analyzed. The paper compares the results with the original studies in discrete time.