Population Aging and its Macroeconomic Implications: A Framework for Analysis

Author/Editor:

Hamid Faruqee

Publication Date:

February 1, 2002

Electronic Access:

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Disclaimer: This Working Paper should not be reported as representing the views of the IMF.The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate

Summary:

This paper develops a model to examine the macroeconomic implications of population aging. Using a general equilibrium framework, the analysis examines the various channels through which changes in demographics affect the economy. Age-earnings profiles are taken to summarize differences in effective labor supply across age groups and to help determine changes in consumption and saving behavior that occur over an agent's lifetime. Aggregating these supply- and demand-side effects, the implications of aging on economic activity and fiscal policy are then examined.

Series:

Working Paper No. 2002/016

Subject:

Aging Demographic change Labor Population and demographics Population growth

English

Publication Date:

February 1, 2002

ISBN/ISSN:

9781451843415/1018-5941

Stock No:

WPIEA0162002

Pages:

32

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