Aging, Factor Prices, and Capital Movements

Andrea Bonfatti, Sagiri Kitao and Selahattin Imrohoroglu
Additional contact information
Andrea Bonfatti: University of Padua
Selahattin Imrohoroglu: University of Southern California

No 245, 2018 Meeting Papers from Society for Economic Dynamics

Abstract: Populations in all major economies have been aging; the working age population has already started to decline in some and projections for future decades describe differential timing and extent of aging. To the extent that capital markets are integrated across regions, these different demographic trends and different fiscal responses to them will have differential implications on capital accumulation, labor supplies, and capital movements across regions. This paper develops a general equilibrium model of the world in which overlapping generations of individuals populate three regions under perfect capital mobility. As mentioned earlier, our idea is to view our world economy as consisting of three regions that have very different demographic trends. The HI region is aging earlier and faster than the MI region, and, Japan has been aging even earlier and faster than the HI region. By isolating Japan as a separate region, our framework aims to highlight the quantitative importance of the differential aging mechanism in studying fiscal sustainability in the Japanese economy.

Date: 2018
New Economics Papers: this item is included in nep-age and nep-dge
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://red-files-public.s3.amazonaws.com/meetpapers/2018/paper_245.pdf (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:red:sed018:245

Access Statistics for this paper

More papers in 2018 Meeting Papers from Society for Economic Dynamics Society for Economic Dynamics Marina Azzimonti Department of Economics Stonybrook University 10 Nicolls Road Stonybrook NY 11790 USA. Contact information at EDIRC.
Bibliographic data for series maintained by Christian Zimmermann ().