Economic Aging and Demographic Change
AbstractThis 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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Bibliographic InfoPaper 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.
Length: 40 pages
Date of creation: Sep 2007
Date of revision:
Overlapping Generations; Aging; Demographic Change; Life-cycle;
Other versions of this item:
- D58 - Microeconomics - - General Equilibrium and Disequilibrium - - - Computable and Other Applied General Equilibrium Models
- D91 - Microeconomics - - Intertemporal Choice and Growth - - - Intertemporal Consumer Choice; Life Cycle Models and Saving
- H55 - Public Economics - - National Government Expenditures and Related Policies - - - Social Security and Public Pensions
- J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure
This paper has been announced in the following NEP Reports:
- NEP-AGE-2007-10-20 (Economics of Ageing)
- NEP-ALL-2007-10-20 (All new papers)
- NEP-DGE-2007-10-20 (Dynamic General Equilibrium)
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- Heinrich Hock & David Weil, 2012.
"On the dynamics of the age structure, dependency, and consumption,"
Journal of Population Economics,
Springer, vol. 25(3), pages 1019-1043, July.
- 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.
- David Weil & Heinrich Hock, 2006. "The Dynamics of the Age Structure, Dependency, and Consumption," Working Papers 2006-08, Brown University, Department of Economics.
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