{
  "title": "Macroeconomic Effects and Policy Challenges of Population Aging",
  "publication": "IMF Working Papers, April 1, 2006",
  "sourceUrl": "https://www.imf.org/en/publications/wp/issues/2016/12/31/macroeconomic-effects-and-policy-challenges-of-population-aging-18947",
  "canonical": "https://www.imf.org/en/publications/wp/issues/2016/12/31/macroeconomic-effects-and-policy-challenges-of-population-aging-18947",
  "overlayPath": "/en/publications/wp/issues/2016/12/31/macroeconomic-effects-and-policy-challenges-of-population-aging-18947/index.md",
  "summary": "This paper simulates the macroeconomic effects of population aging in a dynamic overlapping generations model of a small open economy. The model is calibrated to data for the Czech Republic, where population aging is proceeding at a pace comparable to that in other advanced countries in Europe.",
  "sections": [
    {
      "heading": "Summary and model",
      "content": "- Paper simulates macroeconomic effects of population aging using a dynamic overlapping generations model of a small open economy.\n- Model calibrated to data for the Czech Republic, noted as having population aging proceeding at a pace comparable to that in other advanced countries in Europe.\n- Publication details:\n  - By Hamid Faruqee, Natalia T. Tamirisa\n  - April 1, 2006\n  - Pages: 23\n  - Volume: 2006\n  - Issue: 095\n  - Series: Working Paper No. 2006/095\n  - Stock No: WPIEA2006095\n  - ISBN: 9781451863550\n  - ISSN: 1018-5941"
    },
    {
      "heading": "Key findings",
      "content": "- Population aging is likely to slow economic growth.\n- Population aging is likely to slow improvements in living standards.\n- Reforms that raise labor force participation and productivity growth can mitigate adverse effects of aging, but:\n  - Such reforms are unlikely to eliminate the need for fiscal reforms.\n- The budget will come under pressure from rising age-related expenditures.\n- Consolidation will be needed to preserve debt sustainability."
    },
    {
      "heading": "Policy implications and recommendations",
      "content": "- Raise labor force participation to help offset adverse macroeconomic effects of aging.\n- Raise productivity growth to help offset adverse macroeconomic effects of aging.\n- Implement fiscal consolidation measures to address mounting age-related expenditures and preserve debt sustainability."
    },
    {
      "heading": "Subject and keywords",
      "content": "- Subject: Aging, Fiscal consolidation, Labor force participation, Labor supply, Population and demographics\n- Keywords: expenditure, fertility rate, GDP, labor force, rate, WP\n\nIMF Working Papers — \"Macroeconomic Effects and Policy Challenges of Population Aging\" by Hamid Faruqee and Natalia T. Tamirisa, April 1, 2006.\n\n---\n\n Content in this bundle\n\n- Wp0695\n  - Wp0695 (Markdown version){rel=\"alternate\" type=\"text/markdown\"}\n  - Wp0695 (PDF){rel=\"external\" type=\"application/pdf\"}\n\n---\n\nSource: https://www.imf.org/en/publications/wp/issues/2016/12/31/macroeconomic-effects-and-policy-challenges-of-population-aging-18947"
    }
  ],
  "bullets": [
    "[Markdown version](/en/publications/wp/issues/2016/12/31/macroeconomic-effects-and-policy-challenges-of-population-aging-18947/index.md)",
    "[Structured JSON version](/en/publications/wp/issues/2016/12/31/macroeconomic-effects-and-policy-challenges-of-population-aging-18947/index.json)",
    "[Bundle manifest](/en/publications/wp/issues/2016/12/31/macroeconomic-effects-and-policy-challenges-of-population-aging-18947/bundle-manifest.json)",
    "Authors: Hamid Faruqee, Natalia T. Tamirisa",
    "Published: April 1, 2006",
    "Series: IMF Working Papers",
    "Paper simulates macroeconomic effects of population aging using a dynamic overlapping generations model of a small open economy.",
    "Model calibrated to data for the Czech Republic, noted as having population aging proceeding at a pace comparable to that in other advanced countries in Europe.",
    "Publication details:",
    "Population aging is likely to slow economic growth.",
    "Population aging is likely to slow improvements in living standards.",
    "Reforms that raise labor force participation and productivity growth can mitigate adverse effects of aging, but:",
    "The budget will come under pressure from rising age-related expenditures.",
    "Consolidation will be needed to preserve debt sustainability.",
    "Raise labor force participation to help offset adverse macroeconomic effects of aging.",
    "Raise productivity growth to help offset adverse macroeconomic effects of aging.",
    "Implement fiscal consolidation measures to address mounting age-related expenditures and preserve debt sustainability.",
    "Subject: Aging, Fiscal consolidation, Labor force participation, Labor supply, Population and demographics",
    "Keywords: expenditure, fertility rate, GDP, labor force, rate, WP",
    "**Wp0695**"
  ],
  "related": [
    {
      "title": "Wp0695",
      "role": "document",
      "sourceUrl": "https://www.imf.org/-/media/websites/imf/imported-full-text-pdf/external/pubs/ft/wp/2006/_wp0695.pdf",
      "summary": {
        "path": "/-/media/websites/imf/imported-full-text-pdf/external/pubs/ft/wp/2006/_wp0695.pdf.md",
        "mime": "text/markdown"
      },
      "binary": {
        "path": "/-/media/websites/imf/imported-full-text-pdf/external/pubs/ft/wp/2006/_wp0695.pdf",
        "mime": "application/pdf"
      }
    }
  ],
  "alternates": {
    "markdown": "/en/publications/wp/issues/2016/12/31/macroeconomic-effects-and-policy-challenges-of-population-aging-18947/index.md",
    "json": "/en/publications/wp/issues/2016/12/31/macroeconomic-effects-and-policy-challenges-of-population-aging-18947/index.json",
    "bundleManifest": "/en/publications/wp/issues/2016/12/31/macroeconomic-effects-and-policy-challenges-of-population-aging-18947/bundle-manifest.json"
  },
  "generatedAtUtc": "2026-09-17T17:31:50.921Z"
}