Article ID | Journal | Published Year | Pages | File Type |
---|---|---|---|---|
5099938 | Journal of Economic Dynamics and Control | 2006 | 36 Pages |
Abstract
In this paper we study the implications of population ageing in an economy with a sizeable non-traded goods sector. To this effect a highly stylized micro-founded macro model is constructed in which the age structure of the population plays a non-trivial role. The model distinguishes separate birth and death probabilities (thus allowing for net population change), allows for age-dependent labour productivity (thus mimicing life-cycle saving), and includes a rudimentary pension system (thus allowing for intergenerational redistribution). The model is used to analytically study demographic and pension shocks.
Related Topics
Physical Sciences and Engineering
Mathematics
Control and Optimization
Authors
Leon J.H. Bettendorf, Ben J. Heijdra,