From transfers to capital: analyzing the Spanish demand for wealth using NTA

Miguel Sánchez-Romero, Concepció Patxot, Elisenda Renteria and Guadalupe Souto

No WP-2010-029, MPIDR Working Papers from Max Planck Institute for Demographic Research, Rostock, Germany

Abstract: Inter- and intra-family transfers are a very important part of our daily economic activity. These transfers, whether familial or public, may influence our economic decisions to the same extent that financial markets do. In this paper, we seek to understand how the Spanish stock of capital will evolve if the set of intergenerational transfers observed in year 2000 are maintained in the future. With that aim in mind, we have implemented a general equilibrium overlapping generations model with realistic public and familial transfers drawn from the National Transfer Accounts project (NTA). Given that familial transfers go from parents to children, and public transfers go from children to parents, we show that the Spanish baby boom and baby bust will make the second demographic dividend temporary, and that welfare will be reduced from 2040 onwards.

Keywords: Spain; demographic ageing; economic demography; economic growth (search for similar items in EconPapers)
JEL-codes: J1 Z0 (search for similar items in EconPapers)
Pages: 47 pages
Date: 2010
New Economics Papers: this item is included in nep-age and nep-dge
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Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:dem:wpaper:wp-2010-029

DOI: 10.4054/MPIDR-WP-2010-029

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