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The role of demography on per capita output growth and saving rates

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  • Miguel Sánchez-Romero

Abstract

Computable general equilibrium (CGE) models and “convergence models” differ in their assessment of the extent to which demography influences economic growth. Here, I show that CGE models produce results similar to those of convergence models when more detailed demographic information is used. To do so, I implement a CGE model to explain Taiwan’s economic miracle during the period 1965–2005. I find that Taiwan’s demographic transition accounts for 22 % of per capita output growth and 17.7 % of investment rate for the period 1965–2005. Moreover, this paper confirms most of the literature written on the role of demography on per capita output growth and saving rates since the seminar article by Coale and Hoover ( 1958 ). Copyright Springer-Verlag Berlin Heidelberg 2013

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  • Miguel Sánchez-Romero, 2013. "The role of demography on per capita output growth and saving rates," Journal of Population Economics, Springer;European Society for Population Economics, vol. 26(4), pages 1347-1377, October.
    • Handle: RePEc:spr:jopoec:v:26:y:2013:i:4:p:1347-1377
    DOI: 10.1007/s00148-012-0447-3
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    6. Lee, R., 2016. "Macroeconomics, Aging, and Growth," Handbook of the Economics of Population Aging, in: Piggott, John & Woodland, Alan (ed.), Handbook of the Economics of Population Aging, edition 1, volume 1, chapter 0, pages 59-118, Elsevier.
    7. Rainer Kotschy & Uwe Sunde & Tommaso MonacelliManaging Editor, 2018. "Can education compensate the effect of population ageing on macroeconomic performance?," Economic Policy, CEPR, CESifo, Sciences Po;CES;MSH, vol. 33(96), pages 587-634.
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    11. Taguchi, Hiroyuki, 2021. "A revisit to effects of demographic dynamics on economic growth in Asia," MPRA Paper 110609, University Library of Munich, Germany.
    12. Kotschy, Rainer, 2021. "Health dynamics shape life-cycle incomes," Journal of Health Economics, Elsevier, vol. 75(C).
    13. Tatyana Polkova, 2014. "Demographic potential as a component of life quality," Economy of region, Centre for Economic Security, Institute of Economics of Ural Branch of Russian Academy of Sciences, vol. 1(3), pages 118-130.
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    More about this item

    Keywords

    Demography; Saving rates; Investment rates; Income growth; Overlapping generations; D58; E21; J11;
    All these keywords.

    JEL classification:

    • J1 - Labor and Demographic Economics - - Demographic Economics
    • Z0 - Other Special Topics - - General

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