Debt, Deficits, and Age-specific Mortality

Hamid Faruqee

Review of Economic Dynamics, 2003, vol. 6, issue 2, 300-312

Abstract: This paper develops an overlapping agents model with age-specific mortality rates. The analytical framework also nests Blanchard's (1985, Journal of Political Economy 82, 1095–1117) "perpetual youth" model as a special, though perhaps not realistic, case. With age specific mortality rates, youth is "fleeting." Using standard hyperbolic functions, the model with fleeting youth is able to closely replicate the empirical relation between age and mortality. The steady-state model is used to examine the comparative implications of deficit finance, and age-specific mortality is shown to alter the non-Ricardian properties of the model. (Copyright: Elsevier)

Keywords: Ricardian equivalence; Government debt; Saving (search for similar items in EconPapers)
JEL-codes: E21 E27 E62 H31 (search for similar items in EconPapers)
Date: 2003
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Citations: View citations in EconPapers (27)

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DOI: 10.1016/S1094-2025(02)00020-0

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