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Demographic Dynamics and the Empirics of Economic Growth

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  • Michael Sarel

    (International Monetary Fund)

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    Abstract

    This paper examines the effects of demographic dynamics on the measured rates of economic growth. It develops a model of production with labor productivity that varies with age. Macroeconomic and demographic data are used to estimate the relative productivity of different age groups. A panel database of effective labor supply is constructed in order to reflect the changing age structure of the population. The historical measured growth rates are then deconstructed into effects of demographic dynamics and into "real" growth rates, net of demographic effects.

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    Bibliographic Info

    Article provided by Palgrave Macmillan in its journal Staff Papers - International Monetary Fund.

    Volume (Year): 42 (1995)
    Issue (Month): 2 (June)
    Pages: 398-410

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    Handle: RePEc:pal:imfstp:v:42:y:1995:i:2:p:398-410

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    Cited by:
    1. Rafael Gómez & Pablo Hernández de Cos, 2006. "The importance of being mature: the effect of demographic maturation on global per-capita income," Banco de España Occasional Papers 0604, Banco de España.
    2. Persson, Joakim, 1999. "Demographic and Per Capita Income Dynamics: A Convergence Study on Demographics, Human Capital, and Per Capita Income for the US States," Working Paper Series 156, Trade Union Institute for Economic Research.
    3. Misbah Tanveer Choudhry, 2013. "Age Dependency and Labor Productivity Divergence," Quaderni del Dipartimento di Economia, Finanza e Statistica 113/2013, Università di Perugia, Dipartimento Economia, Finanza e Statistica.
    4. Persson, Joakim & Malmberg, Bo, 1997. "Human Capital, Demographics, and Growth across the US States 1920-1990," Seminar Papers 619, Stockholm University, Institute for International Economic Studies.
    5. James Feyrer, 2009. "The US Productivity Slowdown, the Baby Boom, and Management Quality," NBER Working Papers 15474, National Bureau of Economic Research, Inc.
    6. Rafael Gómez & Pablo Hernández de Cos, 2006. "The importance of being mature - the effect of demographic maturation on global per-capita GDP," Working Paper Series 670, European Central Bank.
    7. Sadik, Ali T. & Bolbol, Ali A., 2001. "Capital Flows, FDI, and Technology Spillovers: Evidence from Arab Countries," World Development, Elsevier, vol. 29(12), pages 2111-2125, December.

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