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Demographic structure and growth: The effect of unfunded social security

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  • Ito, Hiroyuki
  • Tabata, Ken

Abstract

This paper examines how demographics affect economic growth in an OLG model with unfunded social security. We derive two interesting results. First, the relationship between population growth and per capita output growth is hump shaped. Second, the relationship between life expectancy and per capita output growth is also hump shaped.

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Bibliographic Info

Article provided by Elsevier in its journal Economics Letters.

Volume (Year): 100 (2008)
Issue (Month): 2 (August)
Pages: 288-291

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Handle: RePEc:eee:ecolet:v:100:y:2008:i:2:p:288-291

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Web page: http://www.elsevier.com/locate/ecolet

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  1. Kazutoshi Miyazawa, 2006. "Growth and inequality: a demographicexplanation," STICERD - Distributional Analysis Research Programme Papers 87, Suntory and Toyota International Centres for Economics and Related Disciplines, LSE.
  2. Kelley, Allen C. & Schmidt, Robert M., 1995. "Aggregate Population and Economic Growth Correlations: The Role of the Components of Demographic Change," Working Papers 95-37, Duke University, Department of Economics.
  3. Olivier J. Blanchard, 1984. "Debt, Deficits and Finite Horizons," NBER Working Papers 1389, National Bureau of Economic Research, Inc.
  4. Kazutoshi Miyazawa, 2006. "Growth and inequality: a demographic explanation," Journal of Population Economics, Springer, vol. 19(3), pages 559-578, July.
  5. Boucekkine, Raouf & de la Croix, David & Licandro, Omar, 2000. "Vintage Human Capital, Demographic Trends and Endogenous Growth," Discussion Papers (IRES - Institut de Recherches Economiques et Sociales) 2000007, Université catholique de Louvain, Institut de Recherches Economiques et Sociales (IRES).
  6. Volker Meier, 2000. "Time preference, international migration, and social security," Journal of Population Economics, Springer, vol. 13(1), pages 127-146.
  7. David de la Croix & Omar Licandro, . "Life expectancy and endogenous growth," Working Papers 97-23, FEDEA.
  8. Robin Brooks, 2002. "Asset-Market Effects of the Baby Boom and Social-Security Reform," American Economic Review, American Economic Association, vol. 92(2), pages 402-406, May.
  9. Luisa Fuster, 1998. "Effects of uncertain lifetime and annuity insurance on capital accumulation and growth," Economics Working Papers 249, Department of Economics and Business, Universitat Pompeu Fabra.
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