IDEAS home Printed from https://ideas.repec.org/a/bla/rdevec/v5y2001i2p312-327.html
   My bibliography  Save this article

The Impact of Population Aging on the Socially Optimal Rate of National Saving: A Comparison of Australia and Japan

Author

Listed:
  • Ross Guest
  • Ian McDonald

Abstract

This paper calculates, using a representative‐agent model of a small open economy, the optimal rate of national saving for Australia and Japan for the period from the middle 1990s to 2050. The calculations focus on the implications of making allowance for the aging structure of the population in both economies on employment participation, consumption demands, and labor productivity. It is found that for Australia the optimal rate of national saving increases up to the year 2011 and then decreases. For Japan the optimal national saving rate decreases from the mid‐1990s until 2020. The subsequent pattern to 2050 is generally one of decrease with the exact pattern being sensitive to the weight placed on the consumption demands of old people. The contrast in these patterns between Australia and Japan is due to the fact that, compared with Australia, the aging effect on the structure of population in Japan occurs sooner and will be of greater severity.

Suggested Citation

  • Ross Guest & Ian McDonald, 2001. "The Impact of Population Aging on the Socially Optimal Rate of National Saving: A Comparison of Australia and Japan," Review of Development Economics, Wiley Blackwell, vol. 5(2), pages 312-327, June.
    • Handle: RePEc:bla:rdevec:v:5:y:2001:i:2:p:312-327
    DOI: 10.1111/1467-9361.00125
    as

    Download full text from publisher

    File URL: https://doi.org/10.1111/1467-9361.00125
    Download Restriction: no
    File URL: https://libkey.io/10.1111/1467-9361.00125?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bla:rdevec:v:5:y:2001:i:2:p:312-327. See general information about how to correct material in RePEc.

    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.

    We have no bibliographic references for this item. You can help adding them by using 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 RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Wiley Content Delivery (email available below). General contact details of provider: http://www.blackwellpublishing.com/journal.asp?ref=1363-6669 .

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

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.