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Population age structure and consumption growth: evidence from National Transfer Accounts

Author

Listed:
  • Michael Kuhn

    () (Vienna Institute of Demography)

  • Klaus Prettner

    () (University of Hohenheim)

Abstract

Abstract We assess the effects of the population age structure and the population dynamics on economic growth. Following recent research, we focus on the generational turnover effect to characterize the influence of birth and death rates, depending on the age profile of individual consumption, the extent of annuity market imperfections, and the willingness of households to shift consumption over time. Using data from the National Transfer Accounts on age profiles of consumption for a number of different countries, we assess—in a comparative way—the sign and the magnitude of the generational turnover effect and its impact on economic growth. We find considerable cross-country differences and trace them back to the underlying variation in demography and in the age structure of consumption.

Suggested Citation

  • Michael Kuhn & Klaus Prettner, 2018. "Population age structure and consumption growth: evidence from National Transfer Accounts," Journal of Population Economics, Springer;European Society for Population Economics, vol. 31(1), pages 135-153, January.
  • Handle: RePEc:spr:jopoec:v:31:y:2018:i:1:d:10.1007_s00148-017-0654-z
    DOI: 10.1007/s00148-017-0654-z
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    References listed on IDEAS

    as
    1. Klaus Prettner, 2013. "Population aging and endogenous economic growth," Journal of Population Economics, Springer;European Society for Population Economics, vol. 26(2), pages 811-834, April.
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    Cited by:

    1. Bloom, David E. & Kuhn, Michael & Prettner, Klaus, 2018. "Health and Economic Growth," IZA Discussion Papers 11939, Institute of Labor Economics (IZA).

    More about this item

    Keywords

    Demography; Economic growth; Generational turnover; Age structure of consumption; National Transfer Accounts;

    JEL classification:

    • E21 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Consumption; Saving; Wealth
    • J11 - Labor and Demographic Economics - - Demographic Economics - - - Demographic Trends, Macroeconomic Effects, and Forecasts
    • O40 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - General

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