Endogenous Growth and Demographic Transition in a model of Cultural Transmission

Demographic transition theory is developed highlighting cultural transmission pattern as key driver. Individuals maximize cultural fitness, i.e. rate of own cultural type absorbtion by future generations. With low population density, one's culture can be picked up only by own children, thus cultural fitness equals genetic fitness, individuals allocate all energy surplus to reproduction, and Malthusian regime occurs. With rising population density, cultural transmission between non-relatives accelerates; knowledge production by an individual makes her culture more attractive. Individuals reallocate some of energy surplus from reproduction to knowledge production, causing technological growth. The model fits observed demographic transition patterns.