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Demographic structure and capital accumulation

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  • Hippolyte d'Albis

    (LERNA - Economie des Ressources Naturelles - UT Capitole - Université Toulouse Capitole - Université Fédérale Toulouse Midi-Pyrénées - INRA - Institut National de la Recherche Agronomique - CEA - Commissariat à l'énergie atomique et aux énergies alternatives)

Abstract

This paper develops an overlapping-generations (OLG) model to analyze the consequences of demographic structure changes induced by an exogenous shift in the birth rate.We first show that a finite growth rate of the population that maximizes long-run capital per capita exists. Then, we examine the theoretical properties of this growth rate by showing that: (i) it corresponds to the demographic structure such that the average ages of capital holders and workers are equal; (ii) it is associated to an efficient steady state; (iii) it increases with compulsory transfers from younger to older generations. Finally, we explain why standard OLG models do not exhibit such a growth rate.

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  • Hippolyte d'Albis, 2007. "Demographic structure and capital accumulation," Post-Print hal-00630200, HAL.
    • Handle: RePEc:hal:journl:hal-00630200
    Note: View the original document on HAL open archive server: https://hal.science/hal-00630200
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