Ageing and Growth in the Small Open Economy

Ben Heijdra () and Ward Romp

No 1740, CESifo Working Paper Series from CESifo

Abstract: We construct an overlapping generations model for the small open economy which incorporates a realistic description of the mortality process. Agents engage in educational activities at the start of life and thus create human capital to be used later on in life for production purposes. Depending on the strength of the intergenerational externality in the human capital production function, the model gives rise to exogenous or endogenous growth. The effects of demographic shocks and fiscal stimuli on the growth path are derived, both at impact, during transition, and in the long run.

Keywords: demography; education; human capital; economic growth; fertility rate; ageing; overlapping generations; small open economy (search for similar items in EconPapers)
JEL-codes: D91 E10 F41 J11 O40 (search for similar items in EconPapers)
Date: 2006
New Economics Papers: this item is included in nep-dev, nep-dge, nep-edu and nep-mac
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (5)

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Persistent link: https://EconPapers.repec.org/RePEc:ces:ceswps:_1740

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