Demographic structure and capital accumulation
AbstractThis paper develops an overlapping-generations (OLG) model to analyze the consequences of demographic structure changes induced by an exogenous shift in the birth rate.We first show that a finite growth rate of the population that maximizes long-run capital per capita exists. Then, we examine the theoretical properties of this growth rate by showing that: (i) it corresponds to the demographic structure such that the average ages of capital holders and workers are equal; (ii) it is associated to an efficient steady state; (iii) it increases with compulsory transfers from younger to older generations. Finally, we explain why standard OLG models do not exhibit such a growth rate.
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Bibliographic InfoPaper provided by HAL in its series Post-Print with number hal-00630200.
Date of creation: 2007
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Publication status: Published, Journal of Economic Theory, 2007, 132, 1, 411-434
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Continuous-time overlapping-generations models; Population aging;
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