Demographic structure and capital accumulation
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.
|Date of creation:||2007|
|Publication status:||Published in Journal of Economic Theory, Elsevier, 2007, 132 (1), pp.411-434|
|Note:||View the original document on HAL open archive server: https://hal.archives-ouvertes.fr/hal-00630200|
|Contact details of provider:|| Web page: https://hal.archives-ouvertes.fr/|
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