Advanced Search
MyIDEAS: Login

The baby boom and economic growth

Contents:

Author Info

  • Peter S. Yoo
Registered author(s):

    Abstract

    This paper presents a model of economic growth based on the life-cycle hypothesis to determine the path of capital accumulation and economic growth as the baby boom passes through the U.S. economy. The model predicts that a baby boom causes a temporary decline of the capital-labor ratio. The temporary drop of the capital-labor ratio requires a decrease in consumption per capita but as the baby boom generation nears retirement, capital intensity increases, which raises output per worker and per capita consumption. Furthermore, and perhaps counter intuitively, the model predicts that the saving rate of the economy falls during the period of increasing consumer welfare. These results suggest that consumer welfare may increase as the baby boom generation begins to retire near the turn of the century. Thus the retirement of the baby boom generation need not necessarily be a cause of concern.

    Download Info

    If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
    File URL: http://research.stlouisfed.org/wp/more/1994-001/
    Download Restriction: no

    File URL: http://research.stlouisfed.org/wp/1994/94-001.pdf
    Download Restriction: no

    Bibliographic Info

    Paper provided by Federal Reserve Bank of St. Louis in its series Working Papers with number 1994-001.

    as in new window
    Length:
    Date of creation: 1994
    Date of revision:
    Handle: RePEc:fip:fedlwp:1994-001

    Contact details of provider:
    Postal: P.O. Box 442, St. Louis, MO 63166
    Fax: (314)444-8753
    Web page: http://www.stlouisfed.org/
    More information through EDIRC

    Order Information:
    Email:

    Related research

    Keywords: Demography ; Population;

    References

    References listed on IDEAS
    Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
    as in new window
    1. repec:fth:harver:1490 is not listed on IDEAS
    2. Cutler, D.M. & Poterba, J.M. & Sheiner, L.M. & Summers, L.H., 1990. "An Aging Society: Opportunity Or Challenge," Working papers 553, Massachusetts Institute of Technology (MIT), Department of Economics.
    3. Ray C. Fair & Kathryn M. Dominguez, 1987. "Effects of the Changing U.S. Age Distribution on Macroeconomic Equations," NBER Working Papers 2280, National Bureau of Economic Research, Inc.
    4. N. Gregory Mankiw & David N. Weil, 1988. "The Baby Boom, The Baby Bust, and the Housing Market," NBER Working Papers 2794, National Bureau of Economic Research, Inc.
    5. William L. Wascher & Susan W. Burch & John L. Goodman, Jr., 1986. "Economic implications of changing population trends," Federal Reserve Bulletin, Board of Governors of the Federal Reserve System (U.S.), issue Dec, pages 815-826.
    6. Clark, Robert L & Kreps, Juanita & Spengler, Joseph J, 1978. "Economics of Aging: A Survey," Journal of Economic Literature, American Economic Association, vol. 16(3), pages 919-62, September.
    Full references (including those not matched with items on IDEAS)

    Citations

    Lists

    This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

    Statistics

    Access and download statistics

    Corrections

    When requesting a correction, please mention this item's handle: RePEc:fip:fedlwp:1994-001. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Anna Xiao).

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If references are entirely missing, you can add them using this form.

    If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.