Effects of Long-Run Demographic Changes in a Multi-Country Model
December 1, 1991
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Summary
The macroeconomic effects of population aging are explored using data for the G-7 countries and Australia. The link between changes in birth and mortality rates on the one hand, and dependency ratios on the other, is first discussed, then empirical evidence on the effects of dependency ratios on net foreign asset positions and on consumption is presented. Simulations of changes in dependency ratios are then reported, using demographic projections to the year 2025. Finally, the plausibility of the implied changes in net foreign asset positions is discussed.
Subject: Aging, Balance of payments, Consumption, Current account balance, Demographic change, External position, Foreign assets, National accounts, Population and demographics
Keywords: age structure, Aging, Consumption, consumption equation, Current account balance, death rate assumption, Demographic change, dependency ratio, exchange rate, Foreign assets, Global, liability ratio, net effect, open economy, wealth ratio, WP
Pages:
34
Volume:
1991
DOI:
Issue:
123
Series:
Working Paper No. 1991/123
Stock No:
WPIEA1231991
ISBN:
9781451854534
ISSN:
1018-5941
Notes
The macroeconomic effects of population aging are explored using data for the G-7 countries and Australia.
