Aging, Fertility and Macroeconomic Dynamics

Aurélien Eyquem and Masahige Hamano ()
Additional contact information
Masahige Hamano: Faculty of Political Science and Economics, Waseda University, 1-6-1 Nishiwaseda Shinjuku-ku, Tokyo 169-8050, Japan.

No 2121, Working Papers from Waseda University, Faculty of Political Science and Economics

Abstract: A tractable model with heterogeneous households is proposed to analyze the two-way interactions between demographic and macroeconomic variables. Total population and labor market participation are both endogenous and affected by economic as well as demographic factors.In addition, demographic factors have direct effects on aggregate productivity through selection effects on the labor market. We show that aging and negative fertility shocks have opposite predictions in terms of their effects on GDP per capita and aggregate productivity.A quantitative exercise based on Japanese data suggests that an aging shock alone has relatively little effects and falls short in replicating the data, while considering negative fertility shocks fits the data much better.

Keywords: Heterogeneous workers; Aging; Productivity; Labor markets. (search for similar items in EconPapers)
JEL-codes: E20 J11 J13 J21 (search for similar items in EconPapers)
Pages: 27 pages
Date: 2022-02
New Economics Papers: this item is included in nep-age, nep-dge, nep-gro and nep-mac
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://www.waseda.jp/fpse/winpec/assets/uploads/2022/02/E2121.pdf First version, (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:wap:wpaper:2121

Access Statistics for this paper

More papers in Working Papers from Waseda University, Faculty of Political Science and Economics Contact information at EDIRC.
Bibliographic data for series maintained by Haruko Noguchi ().