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Demographic changes, saving, and current account: An analysis based on a panel VAR model

Listed author(s):
  • Kim, Soyoung
  • Lee, Jong-Wha

This paper empirically investigates the macroeconomic effects of demographic changes, focusing on saving rates and current account balances. The econometric investigation based on the panel VAR model shows substantial demographic effects on national saving rates and current account balances in the major advanced (G-7) countries. An increase in the dependency rate significantly lowers saving rates, especially public saving rates. Further, a higher dependency rate significantly worsens current account balances.

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File URL: http://www.sciencedirect.com/science/article/pii/S0922-1425(06)00070-3
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Article provided by Elsevier in its journal Japan and the World Economy.

Volume (Year): 20 (2008)
Issue (Month): 2 (March)
Pages: 236-256

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Handle: RePEc:eee:japwor:v:20:y:2008:i:2:p:236-256
Contact details of provider: Web page: http://www.elsevier.com/locate/inca/505557

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  7. Börsch-Supan, Axel & Ludwig, Alexander & Winter, Joachim, 2001. "Aging and International Capital Flows," Discussion Papers 605, Institut fuer Volkswirtschaftslehre und Statistik, Abteilung fuer Volkswirtschaftslehre.
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  9. Horioka, Charles Yuji, 1992. "Future trends in Japan's saving rate and the implications thereof for Japan's external imbalance," Japan and the World Economy, Elsevier, vol. 3(4), pages 307-330, April.
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  17. Barry P. Bosworth & Ralph C. Bryant & Gary Burtless, 2004. "The Impact of Aging on Financial Markets and the Economy: A Survey," Working Papers, Center for Retirement Research at Boston College 2004-23, Center for Retirement Research.
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