Aging and Wealth Inequality in a Neoclassical Growth Model
Guillaume Vandenbroucke ()
Review, 2016, vol. 98, issue 1, 80 pages
In this article, the author uses a version of the neoclassical growth model with overlapping generations of individuals to investigate the effect of aging on wealth inequality. When an economy’s population becomes older—that is, when the proportion of individuals 65 years of age and older increases—two effects are at work: a direct effect from the changing age composition of the population and an indirect, equilibrium effect from the change in asset holdings by owner’s age. The main result is that wealth inequality in an aging population may decrease or increase depending on the cause of the aging. An increase in life expectancy tends to increase inequality, whereas a reduction in the population growth rate tends to reduce it.
JEL-codes: E1 E2 J1 (search for similar items in EconPapers)
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed
Downloads: (external link)
https://files.stlouisfed.org/files/htdocs/publicat ... cal-growth-model.pdf Full text (application/pdf)
http://dx.doi.org/10.20955/r.2016.61-80 http://dx.doi.org/10.20955/r.2016.61-80 (text/html)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:fip:fedlrv:00054
Ordering information: This journal article can be ordered from
https://files.stloui ... htdocs/publications/
Access Statistics for this article
More articles in Review from Federal Reserve Bank of St. Louis Contact information at EDIRC.
Bibliographic data for series maintained by Anna Oates ().