Aging and Public Capital Formation

Akira Yakita

Chapter Chapter 12 in Population Aging, Fertility and Social Security, 2017, pp 181-193 from Springer

Abstract: Abstract In this chapter, we examine the effects of population aging on the balanced-growth-maximizing public investment policy in a model with a growth engine of public capital accumulation, instead of human capital accumulation. Extended life expectancy tends to increase individual lifecycle savings, while the increased old-age dependency requires more resources to be allocated to consumption in the economy as a whole. Thus, declining working population makes for a severe trade-off between private and public capital accumulation.

Keywords: Public Capital; Private Capital; Depreciation Rate; Capital Ratio; Overlap Generation Model (search for similar items in EconPapers)
Date: 2017
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Persistent link: https://EconPapers.repec.org/RePEc:spr:popchp:978-3-319-47644-5_12

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DOI: 10.1007/978-3-319-47644-5_12

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