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The economic impact of demographic structure in OECD countries

Author

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  • Yunus Aksoy

    (Department of Economics, Mathematics & Statistics, Birkbeck)

  • Tobias Grasl

    (Department of Economics, Mathematics & Statistics, Birkbeck)

  • Ron P Smith

    (Department of Economics, Mathematics & Statistics, Birkbeck)

Abstract

We examine the impact of demographic structure, the proportion of the population in each age group, on growth, savings, investment, hours, interest rates and inflation using a panel VAR estimated from data for 20 OECD economies, mainly for the period 1970-2007. This flexible dynamic structure with interactions among the main macroeconomic variables allows us to estimate long-run effects of demographic structure on the individual countries. Our estimates confirm the importance of these effects.

Suggested Citation

  • Yunus Aksoy & Tobias Grasl & Ron P Smith, 2012. "The economic impact of demographic structure in OECD countries," Birkbeck Working Papers in Economics and Finance 1212, Birkbeck, Department of Economics, Mathematics & Statistics.
    • Handle: RePEc:bbk:bbkefp:1212
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    File URL: https://eprints.bbk.ac.uk/id/eprint/5947
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    References listed on IDEAS

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    1. David E. Bloom & David Canning & Günther Fink, 2010. "Implications of population ageing for economic growth," Oxford Review of Economic Policy, Oxford University Press and Oxford Review of Economic Policy Limited, vol. 26(4), pages 583-612, Winter.
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    7. David E. Bloom & David Canning & Günther Fink, 2008. "Population Aging and Economic Growth," World Bank Publications - Books, The World Bank Group, number 28027, December.
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    Cited by:

    1. Margarita Katsimi & Gylfi Zoega, 2016. "European Integration and the Feldstein–Horioka Puzzle," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 78(6), pages 834-852, December.
    2. Gudmundsson, Gudmundur S. & Zoega, Gylfi, 2014. "Age structure and the current account," Economics Letters, Elsevier, vol. 123(2), pages 183-186.
    3. Dieu Thanh Le & Hail Park, 2019. "The Impact Of Demographic Change On Economic Growth," The Singapore Economic Review (SER), World Scientific Publishing Co. Pte. Ltd., vol. 65(02), pages 471-484, August.

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    More about this item

    Keywords

    demographic changes; macroeconomic variables; business cycle;
    All these keywords.

    JEL classification:

    • E32 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Business Fluctuations; Cycles
    • J11 - Labor and Demographic Economics - - Demographic Economics - - - Demographic Trends, Macroeconomic Effects, and Forecasts

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