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Economic Aging and Demographic Change

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  • Dominik Grafenhofer

    ()

  • Christian Jaag

    ()

  • Christian Keuschnigg

    ()

  • Mirela Keuschnigg

    ()

Abstract

This paper presents a generalized model of overlapping generations with economic aging of households. Economic age is defined as a set of personal attributes such as earnings potential and tastes that are characteristic of a person's position in the life-cycle. We separate the concepts of economic age and time since birth in assuming only a small number of different states of age. Agents sharing the same economic characteristics are aggregated analytically to a low number of age groups. The model thus allows for a very parsimonious approximation of life-cycle differences in earnings, wealth and consumption. As an illustration, we quantitatively apply the model to study the impact of demographic change.

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File URL: http://www1.vwa.unisg.ch/RePEc/usg/dp2007/DP-35-Gr.pdf
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Bibliographic Info

Paper provided by Department of Economics, University of St. Gallen in its series University of St. Gallen Department of Economics working paper series 2007 with number 2007-35.

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Length: 40 pages
Date of creation: Sep 2007
Date of revision:
Handle: RePEc:usg:dp2007:2007-35

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Web page: http://www.seps.unisg.ch/
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Keywords: Overlapping Generations; Aging; Demographic Change; Life-cycle;

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References

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  1. Dominik Grafenhofer & Christian Jaag & Christian Keuschnigg & Mirela Keuschnigg, 2005. "Probabilistic Aging," University of St. Gallen Department of Economics working paper series 2005 2005-08, Department of Economics, University of St. Gallen.
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  17. Christian Keuschnigg & Mirela Keuschnigg, 2004. "Aging, Labor Markets, and Pension Reform in Austria," FinanzArchiv: Public Finance Analysis, Mohr Siebeck, Tübingen, vol. 60(3), pages 359-, September.
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Citations

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Cited by:
  1. Christian Keuschnigg & Mirela Keuschnigg & Christian Jaag, 2009. "Aging and the Financing of Social Security in Switzerland," University of St. Gallen Department of Economics working paper series 2009 2009-26, Department of Economics, University of St. Gallen.
  2. Helmut Hofer & Michael Landesmann & Isilda Mara & Philip Schuster & Gerlinde Titelbach & Hermine Vidovic, . "Auswirkungen der Arbeitsmarktöffnung am 1. Jänner 2014 auf den Wirtschafts- und Arbeitsstandort Österreich," wiiw Research Papers in German language rpg:, The Vienna Institute for International Economic Studies, wiiw.
  3. Heinrich Hock & David N. Weil, 2006. "The Dynamics of the Age Structure, Dependency, and Consumption," NBER Working Papers 12140, National Bureau of Economic Research, Inc.
  4. Vladimir Gligorov & Mario Holzner & Sandor Richter, 2014. "Wachstumsbeschleunigung dank Investitionswende in Mittel-, Ost- und Südosteuropa," wiiw Research Papers in German language 2013-10, The Vienna Institute for International Economic Studies, wiiw.

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