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Aging, Fertility and Macroeconomic Dynamics

Author

Listed:
  • Aurelien Eyquem

    (University of Lausanne, CH)

  • Masashige Hamano

    (Waseda university, Tokyo, JP and Université du Luxembourg (Extramural Research Fellow))

Abstract

A tractable model with heterogeneous households is proposed to analyze the two-way interactions between demographic and macroeconomic variables. Total population and labor-market participation are both endogenous and affected by economic as well as demographic factors. We perform a quantitative exercise focusing on trend dynamics based on Japanese data. Our counterfactual analysis reveals the role of labor-market participation costs, sunk costs of raising newborns, and technology progress.

Suggested Citation

  • Aurelien Eyquem & Masashige Hamano, 2025. "Aging, Fertility and Macroeconomic Dynamics," DEM Discussion Paper Series 25-06, Department of Economics at the University of Luxembourg.
    • Handle: RePEc:luc:wpaper:25-06
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    References listed on IDEAS

    as
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    Keywords

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    JEL classification:

    • E20 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - General (includes Measurement and Data)
    • J11 - Labor and Demographic Economics - - Demographic Economics - - - Demographic Trends, Macroeconomic Effects, and Forecasts
    • J13 - Labor and Demographic Economics - - Demographic Economics - - - Fertility; Family Planning; Child Care; Children; Youth
    • J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure

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