Economics Letters 41 (1993) 107-110 01651765/93/$06.00 0 1993 Elsevier Science Publishers B.V. All rights reserved 107 Optimal population size and endogenous growth Theodore Palivos * Department of Economics, Louisiana State University, Baton Rouge, LA 70803, USA Chong K. Yip Georgia State University, Atlanta, GA, USA Received 13 October 1992 Accepted 16 December 1992 zyxwvutsrqponmlkjihgfedcbaZYXWVUTSRQPONMLKJIHGFEDCBA Abstract We compare the population and output growth rates implied by the welfare functions of Bentham and Mill. Contrary to previous findings, we show that, under conditions that ensure an optimum, the Benthamite criterion leads to a smaller population size and higher economic growth. 1. Introduction Many applications in economics require the selection of an objective function which enables the comparison of allocations involving different population sizes. The two most commonly used criteria are the Benthamite and the Millian welfare functions, also known as classical and average utilitarianism, respectively. The former maximizes total utility of the society and thus represents individuals, while the latter maximizes average utility and so represents generations. Edgeworth (1925) was the first to conjecture that the Benthamite principle leads to a larger population size and a lower standard of living. This is one of the main objections to classical utilitarianism [see Dasgupta (1984)] and thus per capita utility maximization is often used to justify limits in population. In two recent articles, Nerlove et al. (1982, 1985) confirm Edgeworth’s conjecture. Specifically, they show that, in a finite horizon setting in which there is no production and parents care about the number and the utility of their children, the optimal population growth rate is larger for the Benthamite than for the Millian welfare function. They also reach the same conclusion in an infinite horizon setting making steady-state comparisons. The purpose of this paper is to examine Edgeworth’s conjecture in an endogenous growth framework in which there are interactions between output and population growth rates. It is shown that, under conditions that ensure an optimum, the Benthamite criterion leads to smaller population and higher output growth rates than the Millian. * Corresponding author.