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Prospective Ageing and Economic Growth in Europe

Author

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  • Jesus Crespo Cuaresma

    () (Department of Economics, Vienna University of Economics and Business)

  • Martin Lábaj

    () (Department of Economic Policy, Faculty of National Economy, University of Economics in Bratislava)

  • Patrik Pruzinský

    () (Department of Economic Policy, Faculty of National Economy, University of Economics in Bratislava)

Abstract

We assess empirically the role played by prospective ageing measures as a predictor of income growth in Europe. We show that prospective ageing measures which move beyond chronological age and incorporate changes in life expectancy are able to explain better the recent long-run growth experience of European economies. The improvement in explanatory power of prospective ageing indicators as compared to standard measures based on chronological age is particularly relevant for long-run economic growth horizons.

Suggested Citation

  • Jesus Crespo Cuaresma & Martin Lábaj & Patrik Pruzinský, 2014. "Prospective Ageing and Economic Growth in Europe," Department of Economics Working Papers wuwp165, Vienna University of Economics and Business, Department of Economics.
  • Handle: RePEc:wiw:wiwwuw:wuwp165
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    1. repec:eee:joecag:v:7:y:2016:i:c:p:125-142 is not listed on IDEAS
    2. Gehringer, Agnieszka & Prettner, Klaus, 2014. "Longevity and technological change," Center for European, Governance and Economic Development Research Discussion Papers 213, University of Goettingen, Department of Economics.
    3. Kufenko, Vadim & Prettner, Klaus, 2016. "You can't always get what you want? Estimator choice and the speed of convergence," Hohenheim Discussion Papers in Business, Economics and Social Sciences 20-2016, University of Hohenheim, Faculty of Business, Economics and Social Sciences.
    4. repec:bla:rdevec:v:21:y:2017:i:3:p:909-934 is not listed on IDEAS
    5. von Gaessler, Anne Edle & Ziesemer, Thomas, 2016. "Optimal education in times of ageing: The dependency ratio in the Uzawa–Lucas growth model," The Journal of the Economics of Ageing, Elsevier, vol. 7(C), pages 125-142.
    6. Kufenko, Vadmin & Prettner, Klaus, 2017. "You can't always get what you want? A Monte Carlo analysis of the bias and the efficiency of dynamic panel data estimators," ECON WPS - Vienna University of Technology Working Papers in Economic Theory and Policy 07/2017, Vienna University of Technology, Institute for Mathematical Methods in Economics, Research Group Economics (ECON).

    More about this item

    Keywords

    Economic growth; ageing; prospective age; old age dependency ratio;

    JEL classification:

    • I15 - Health, Education, and Welfare - - Health - - - Health and Economic Development
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration
    • O52 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Europe

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