Population Aging and its Macroeconomic Implications: A Framework for Analysis
February 1, 2002
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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.
Subject: Aging, Demographic change, Labor, Population and demographics, Population growth
Keywords: age-earnings distribution, age-earnings function, age-earnings profile, Aging, birth rate, C. Age-earnings profile, current account, Demographic change, fertility rate, life-cycle earnings path, Population Aging, Population growth, saving, WP
Pages:
32
Volume:
2002
DOI:
Issue:
016
Series:
Working Paper No. 2002/016
Stock No:
WPIEA0162002
ISBN:
9781451843415
ISSN:
1018-5941
