Fertility Waves, Aggregate Savings and the Rate of Interest
During the last 50 years there have, in many countries, been large movements in the growth of labor productivity, real wage rates, the rate of interest, and the household savings ratio. In this paper we use an overlapping generations model to study if demographic shocks, like the baby boom, can generate the kind of movements observed. Simulations show this is indeed the case. We also study the interactions between a pay-as-you-go pension system and demographic disturbances.
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|Date of creation:||1993|
|Date of revision:|
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