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On the effects of public and private transfers on capital accumulation: some lessons from the NTA aggregates

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  • Miguel Sánchez-Romero

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  • Concepció Patxot
  • Elisenda Rentería
  • Guadalupe Souto

Abstract

Intergenerational transfers are a very important part of our daily economic activity. These transfers, whether familial or public, may influence our economic decisions to the same extent that financial markets do. In this paper, we seek to shed some light on the effects of transfers on capital accumulation in the face of demographic aging. In particular, a general equilibrium overlapping generations model with realistic public and familial transfers drawn from the National Transfer Accounts project is implemented to Spain. Given that, in this case, net familial transfers mainly go from parents to children while public transfers go from children to parents, it is shown that the Spanish baby boom and baby bust could lead to capital depletion and a reduction in consumption per capita. Copyright Springer-Verlag 2013

Suggested Citation

  • Miguel Sánchez-Romero & Concepció Patxot & Elisenda Rentería & Guadalupe Souto, 2013. "On the effects of public and private transfers on capital accumulation: some lessons from the NTA aggregates," Journal of Population Economics, Springer;European Society for Population Economics, vol. 26(4), pages 1409-1430, October.
    • Handle: RePEc:spr:jopoec:v:26:y:2013:i:4:p:1409-1430
    DOI: 10.1007/s00148-012-0422-z
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    References listed on IDEAS

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    Citations

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    Cited by:

    1. Lee, R., 2016. "Macroeconomics, Aging, and Growth," Handbook of the Economics of Population Aging, Elsevier.
    2. repec:spr:jopoec:v:31:y:2018:i:1:d:10.1007_s00148-017-0654-z is not listed on IDEAS
    3. repec:dem:demres:v:36:y:2017:i:48 is not listed on IDEAS
    4. Gemma Abio Roig & Concepció Patxot Cardoner & Miguel Sánchez-Romero & Guadalupe Souto Nieves, 2015. "The Welfare State and the demographic dividend: A cross-country comparison," UB Economics Working Papers 2015/332, Universitat de Barcelona, Facultat d'Economia i Empresa, UB Economics.

    More about this item

    Keywords

    Second demographic dividend; Transfers; Computable general equilibrium; D58; J11; H53;

    JEL classification:

    • D58 - Microeconomics - - General Equilibrium and Disequilibrium - - - Computable and Other Applied General Equilibrium Models
    • J11 - Labor and Demographic Economics - - Demographic Economics - - - Demographic Trends, Macroeconomic Effects, and Forecasts
    • H53 - Public Economics - - National Government Expenditures and Related Policies - - - Government Expenditures and Welfare Programs

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